Lument announced a couple of financings involving short-term debt, one for an acquisition and one to refinance a stabilizing seniors housing property. First, a long-time operator of a 150-bed skilled nursing facility in Oklahoma City, Oklahoma, was able to take its ownership interest in the facility from 33% to 100% with the help of acquisition financing arranged by Lument. Bill Wilson led the transaction, and Lument’s debt syndications team, led by Steve McGee and Sangjin Na, placed the $10.7 million loan with a community bank.
The loan features a five-year term, with a minimum of two years of interest only, 25-year amortization and a fixed interest rate. In addition to funding the acquisition, the closing included $1 million for additional capital improvements.
Originally built in 1970, Bellevue Health & Rehabilitation features 88 private units and 31 semi-private units. It has performed strongly post-pandemic, boasting a 98% occupancy rate as of late 2022. But, Lument was also able to identify expense efficiency opportunities through its clinical risk team, led by Bradley Granger and Jonathan Vega. The team identified significant opportunities to improve margins, including reducing nursing expenses, which should further help improve the facility’s performance. Next up is a HUD take-out within the next couple of years.
Second, the Lument team closed a $14.7 million proprietary bridge loan to refinance Arcadia Senior Living, a 68-unit assisted living community in Portland, Oregon. Casey Moore led the transaction. The partnership owner wished to consolidate existing debt and partner equity into one senior loan. This new loan refinances outstanding debt, provides earn out proceeds, and positions the community for a HUD refinance upon stabilization in the near-future.
Built in 2019, Arcadia Senior Living is managed by Avant Senior Housing & Consulting, LLC. The partnership owner was represented by its principal, Kelvin Ng, in the transaction.
