A skilled nursing facility in Tennessee that was struggling to maintain debt service and other loan obligations sold with the help of Laca Wong-Hammond and Isabel Carta of Lument Securities serving as exclusive financial advisor to the seller. Located in Rocky Top, about 25 miles from Knoxville, Summit View of Rocky Top is a 117-bed skilled nursing facility that offers short-term rehab and traditional nursing care, along with an 18-bed behavioral health hospital. It also carried an attractive, assumable loan. Like many facilities, it had experienced financial and operational difficulties since the pandemic, and so the local owner/operator engaged Lument Securities and Lument’s asset management team to find an outcome that benefitted all parties.
A competitive marketing process garnered significant interest before Core LTC Services, a private long-term care operator based in Tennessee, emerged as the buyer. Lument also suggested an interim manager change with a group that would fund working capital and provide financial relief to the owner, which Core LTC was able to do. The transaction structure included the loan assumption, but the terms of the sale were not disclosed. The seller exited the industry as a result of the deal.
