Monticello Asset Management, a specialized private real estate and asset-based lender, asset manager and servicer, just provided $40 million in 10-year, first lien debt for an assisted living community in the Bronx, New York. The 256-bed community participates in the Assisted Living Program, which was introduced in the state around 30 years ago. In short, the ALP program provides a higher level of care (close to skilled nursing) in an assisted living setting for Medicaid residents. It’s a win for the state, which can reimburse nearly skilled nursing level care at a lower rate, and for the providers, which can take in Medicaid residents at a significantly higher rate. Even with the higher care and staffing costs, those all-Medicaid facilities can often boast 30% operating margins.
Built in 1961, the Bronx community was renovated in the last two years to include updates to the resident rooms, lobby, common areas and landscaping. Monticello provided the long-term financing after the community received its full ALP licensure, and it has since stabilized operations, with occupancy currently at 94%, as of the end of September.