A few months after Montgomery Intermediary Group announced it was adding a healthcare real estate debt placement vertical alongside its investment sales platform, Jeremy Warren (the man hired to develop the new vertical) closed the group’s first loan. He successfully sourced and closed a refinance for a portfolio of three assisted living communities in Kansas. Built more than 20 years ago, the communities each feature between 20 and 30 units with a mostly Medicaid waiver census. Occupancy was nearly full at three of the locations, with very strong operating margins. The portfolio also benefited from a recent Medicaid waiver rate increase. There were three other similar communities that were also profitable.
The current owner, which has decades of experience in the industry, had acquired the communities over the years and wished to refinance a note held on six of its communities. However, the borrower only wanted to encumber three of its assets with new debt. Also of note, this borrower across its 20-year time in the business had never worked with a debt broker. So, Mr. Warren helped secure a $6.8 million loan from a Kansas bank, secured by the three properties. It came with an attractive rate and 20-year amortization.
The deal closed at the end of December, just four months after Mr. Warren joined the firm. Previously, he worked at NBH Bank as an AVP where he helped underwrite, manage and source skilled nursing and seniors housing transactions across the country that totaled more than $350 million of funded debt. Before that, he worked at Texas Capital Bank as an underwriter.
