VIUM Capital followed up its $1.3 billion in transaction volume for the first half of 2022 with a healthy $100 million in closed transactions across seven properties in July. The activity comprised six bridge loans and one HUD refinance in six states from Pennsylvania to Washington.
The $13.68 million HUD loan was arranged for a 199-bed CCRC in Arizona. A not-for-profit acquired the property in January 2021 with the help of an acquisition bridge loan also secured by VIUM. It features 12 independent living units, 93 assisted living units and 94 skilled nursing beds.
The largest loan, totaling $20 million, was arranged for a 120-bed skilled nursing facility in Ohio to refinance $9 million of debt from the borrower’s acquisition in August 2021. VIUM was able to add leverage to the facility with the new loan, for which the initial funding was based on the trailing-10 months of EBITDAR ending May 2022. Next, VIUM secured a $14.273 million bridge loan to refinance a 144-unit senior living community in Pennsylvania. The loan will allow the borrower to reposition the community in the local market and change the unit mix before taking the debt to permanent financing.
VIUM also refinanced a skilled nursing facility in southern Texas, in addition to providing equity-out proceeds and covering transaction costs, with a $17.08 million bridge loan. Structured at 60% loan-to-value, the loan has a short term and partial recourse that burns down upon submission of the HUD application, which will take place later this month. The borrower leased the property in 2017 and exercised its purchase option in 2018 before continuing to improve performance during the pandemic. So, a HUD take-out should be around the corner.
A 120-bed skilled nursing facility in Washington obtained a $15.55 million bridge loan to pay off seller financing, provide a capex line and cash out at closing. The financing comprises $10 million of initial funding with a $1.5 million capex draw and $4.05 million in earnouts (made up of three tranches). VIUM had already refinanced two other buildings in Washington for the borrower.
Finally, there were two acquisition loans. First, VIUM arranged $12.8 million in bridge financing for the real estate purchase of a 79-unit assisted living/memory care community in Tennessee and $1.3 million to fund the construction of eight additional MC units. The borrower has been operating the community since its construction several years ago. Second, a $7.7 million bridge loan covered the acquisition and rehabilitation of an 83-unit senior living community in Washington. The repeat client will reposition the asset from majority-independent living to a full-service independent living/assisted living/memory care campus.
