Lancaster Pollard keeps the closings coming, arranging two transactions for senior care facilities in Georgia and California and showing some variety in the process. First, Conner Girdley led the way on a construction financing for a to-be-built community with 131 units of assisted living and memory care in Cobb County, Georgia. The borrower, Brickmont Assisted Living, obtained $24.5 million in tax-exempt bond financing though the Section 142(d) program, which provides financing to assisted living communities that set aside at least 20% of their units for residents whose income is 50% or less of the area median gross income. The Cobb County Board of Commissioners unanimously approved the request in February.
Then, Lancaster Pollard’s Jason Dopoulos helped Totally Kids Specialty Healthcare obtain a $19.5 million HUD loan for its 56-bed skilled nursing facility in Loma Linda, California. Located on a campus that also includes a 25-bed pediatric acute care hospital, intermediate care facility and pediatric day care facility, this SNF consists of a hospital wing that serves disabled and severely ill pediatric patients, including prolonged acute mechanical ventilation care.
The property sits on two distinct parcels and the operator runs both the SNF and the acute care facilities as a single entity, which allows it to maintain a certain reimbursement structure at the SNF. However, to comply with HUD’s guidelines that require only a single-asset SNF entity obtaining the loan, Lancaster Pollard had to secure an exemption to comply with HUD. This included bifurcation of the operator’s AR loan into two distinct lines, segregating the cash flows from each property.
Lancaster Pollard also assisted Totally Kids in securing a bridge loan via a local banking partner, which allowed for the acquisition of the southern parcel that houses the SNF on the campus. The separate, preexisting financing for the north parcel stayed in place, but this structure brought the combined campus into compliance for permanent financing via HUD.