Monticello Asset Management headed to Rural Retreat, Virginia in the southwest part of the state to arrange first lien debt financing for a 120-bed skilled nursing facility. Working on behalf of the experienced owner/operator, which currently operates 26 facilities in five states (including seven facilities and 915 total licensed beds in Virginia), Monticello and its affiliates provided a $13.5 million loan. It came with a five-year term.
The facility was built in 2014, which is quite new for skilled nursing, especially in rural communities. Assuming a standard 70% loan-to-value, that means the per-bed value of the facility surpasses $110,000 per bed. Given its age, that makes sense.
