Popular Community Bank, a subsidiary of Popular, Inc. (NASDAQ: BPOP), was busy this month, closing a couple of term loans along with five separate credit facilities. Ken Mitchell, who leads the National Healthcare Financing Division of Popular, closed both an $18 million loan and a $13 million loan for Grand Healthcare System to exercise purchase options on a 179-bed skilled nursing facility in Queens, New York and a 122-bed skilled nursing facility in the Hudson Valley area of New York. Grand had been operating the facilities since 2014, both of which occupancy above 95% and strong quality mixes. Plus, the Queens facility recently opened a 14-bed unit to serve stroke patients.
As for the credit facilities, Mr. Mitchell closed two amounting to $23.5 million for the current operator (Aristacare) of a 165-bed skilled nursing facility in Manchester Township, New Jersey to exercise a purchase option on the property. The credit facilities will also finance the addition of a new onsite therapy gym and pool, as well as a $1.5 million working capital revolving line of credit. Mr. Mitchell also closed three credit facilities, totaling $7.45 million, for a 125-bed skilled nursing facility in Rossville, Georgia. The financing provides for a $5.4 million acquisition mortgage, a $1.05 million leasehold improvement line of credit towards renovations and the expansion for a new specialized sub-acute unit, and a $1 million working capital line of credit. An East Coast-based group of private skilled nursing investor-operators is the buyer, which will take over the facility that was formerly owned by the now-bankrupt Hutcheson Medical Center hospital group. It had been operated by a bankruptcy trustee since late 2014, but has maintained an occupancy above 90% and is profitable.
