The Regions Bank Healthcare Real Estate Team and Regions Capital Markets had quite the Q4, closing more than $121.4 million in balance sheet and agency loans. First, to HUD, Jack Boudler of Regions secured a $4.57 million loan to fund the addition and renovation of a small skilled nursing facility in the Midwest. The facility currently features 60 beds, with 25 private and 35 semi-private rooms. The addition will include 24 more private rooms, a new 2,143-square foot therapy area with a dedicated exterior door, an employee breakroom and administrative spaces.
Regions also closed a Fannie Mae financing, with Amber Crosby and Russ Phillips leading the way on two cross-collateralized loans totaling $10.4 million for a Florida-based owner/operator to pay off short-term debt on two of its senior living communities in Florida. Combining for 48 assisted living and 40 memory care units, the communities were on average 89% occupied and will receive capital improvements thanks to the financing.
Chris Honn and John McGough closed a $40 million loan syndication to support the acquisition of five seniors housing properties and 466 total IL, AL and MC units in California and Florida. A joint venture between an East Coast-based national operator and a U.S.-based real estate owner of a foreign investment company was the buyer. They obtained a multi-year, floating-rate loan with extension provisions and the ability to increase if additional properties are added to the collateral pool.
Chris Honn then went solo as the banker for a five-year, floating-rate loan provided to a new client, Focus Healthcare Partners, to acquire a large senior living community in the Baltimore, Maryland MSA. Featuring 187 independent living, 58 assisted living and 20 memory care units, the community opened in early 2001 and was over 90% occupied at closing. In addition to bringing in a Midwest-based seniors housing operator to manage the community, Focus will also invest in substantial renovations to both resident rooms and common areas. The loan was structured with interest-only payments to help the borrower during renovations.
Lastly, Mr. Honn arranged two revolving lines of credit for another new customer based in California, the proceeds of which were used to repay existing debt and for general corporate purposes. The total debt commitment was $28.3 million, and each loan comes with a three-year, interest-only term that has extension options. One property in Texas includes 138 IL and 55 AL units, while the second property in North Carolina features 106 IL and 29 AL units. Operated by a national provider, they were both stabilized at closing, and the loan commitments represent about 50% of their value.
