Mission Health Communities, a private multi-state operator of senior care facilities, recently engaged Alec Blanc of Monarch Advisors to source acquisition debt for the purchase of a 78-bed skilled nursing facility in Topeka, Kansas. The behavioral-focused facility was already operated by Mission Health, making for a seamless transition. Occupancy hovered between the high-80s and low-90s, and the facility was profitable, benefiting from a significant rate increase in Kansas effective July 1, 2023. Mission Health had taken over operations after the facility entered into receivership.
Mission Health obtained a $2.1 million senior loan from a local bank to fund the deal. Monarch structured the loan with a five-year, fixed-rate term, priced at the prime rate (8.5%), with a 25-year amortization schedule.
