Loan requests keep pouring into Regions Bank, and the team has been for the most part obliging. Of course, the bank has to be discerning on which projects or deals to fund, and most likely more conservative in its terms, but we’re happy to see a continuous flow of activity from them. We know most lenders would like to be closing more deals, if it were not for the slower third-party approvals and inspections these days.
Jack Boulder of Regions Bank completed a two-part financing to support Trilogy Health Services’ acquisition of four skilled nursing and assisted living properties. Located in Kentucky, Ohio and Michigan, the properties all provided a mix of assisted living and skilled nursing beds, totaling 374 beds. Merchant builders developed the portfolio and leased it to Trilogy with an option to purchase. The properties were not yet stabilized when Trilogy acquired them in 2018, so Regions underwrote a bridge loan with the intent of taking the properties to HUD. And that’s just what they did, arranging 35-year fully amortizing assumable loans. The refinance took out the full principal balance plus much of the cost of closing the bridge and HUD debt.
Chris Honn then originated a $36.8 million construction/mini-perm loan for a to-be-built assisted living/memory care community in the Portland, Oregon area. A Colorado-based developer/operator joint ventured with a West Coast-based private investor to build the campus, which will feature 83 assisted living and 32 memory care units. Coming out to approximately $320,100 per unit, the loan has a floating rate and five-year initial term, with four years of interest only and a staged reduction in loan repayment recourse. Also, Regions may take out the debt down the road with a HUD loan for the new clients.
