Alec Blanc of Monarch Advisors arranged a new loan to fund a partnership buyout for an Indiana CCRC with a total of 197 skilled nursing beds and independent living units. The borrowers, two of four partners, engaged Monarch to source $17.0 million of senior debt for the transaction. Monarch was successful at securing a bridge-to-HUD commitment from a national bank lender. The two-year interest-only loan, priced at SOFR plus 2.85%, fully funded the repurchase of the membership interests of the exiting partners, with the remaining partners rolling over their equity. In addition to the repurchase, proceeds will be used to fund up to $1.3 million of capital expenditures plus closing costs.
Blanc also closed a new loan for the acquisition of a skilled nursing community and refinance of a second one, both in Wisconsin. The owner and operator of the properties received $4.25 million of senior debt from a debt fund lender, consisting of a $3 million two-year term loan, with a one-year extension option, and a $1.25 million increase to their revolving line of credit. This second closing is a companion to another earlier Wisconsin closing announced in May 2023.
