Jeremy Warren of Montgomery Intermediary Group had to utilize some creativity to close an acquisition loan for a skilled nursing facility in southern Illinois. Owned by a highly motivated seller, the 50+ year old facility features 112 beds. That seller was unable to provide official financial statements for the facility, making finding a lender and closing the financing a more difficult prospect.
But Warren found a regional bank based near the facility that was willing to get involved because of the experience and regional presence of the buyer, an Illinois-based operator with a significant portfolio in the state. There was a large disparity between the appraised loan-to-value and the eventual loan-to-cost, helping to facilitate the 80% LTC. The purchase price was not disclosed. The bank presented its term sheet quickly and closed the transaction just 40 days afterwards.
