Contemporary Healthcare Capital has been on a roll lately, closing mezzanine loan after mezzanine loan for clients across the country. Its latest transaction saw the firm refinance a 165-bed skilled nursing facility in Newfane, New York owed by Maximus Healthcare Group, LLC. Maximus had announced its intent to acquire the aging facility in November 2014, closing the deal in January 2016 at a purchase price of $7 million, or $40,000 per bed.
The facility was built in 1963 and was acquired by Eastern Niagara Hospital in 1997. When Maximus took over, the facility was losing money, with occupancy at 83%, and the hospital was looking to sell off its ancillary assets. Since acquiring it, Maximus has reduced the number of beds to 165 and clearly gotten the operations back on track. Contemporary closed a $2.05 million mezzanine loan, while CoastalStates Bank provided the accompanying senior loan, to help refinance an existing and maturing term loan originally provided by Contemporary and another regional commercial bank to support the acquisition of the facility.
