Lument secured a $35.6 million loan from the USDA CF (Community Facilities) program to fund the construction of a replacement 240-bed skilled nursing facility in Bellefonte, Pennsylvania. The previous 240-bed facility was more than 80 years old and had received some renovations over the years, but it was deemed unsuitable for substantial renovations due to both its age and location.
So, Miles Kingston of Lument worked with Complete Healthcare Resources Eastern (CHRE), which has been operating the facility since 2013, to arrange the financing necessary for the project. It ended up being a multiyear strategy. First, CHRE obtained a $35.6 million bridge construction loan in June 2019 from First National Bank. Then, once construction was completed, Mr. Kingston closed a $35.6 million USDA CF direct loan to pay off the bridge debt and replace it with a low, fixed interest rate and 36-year term.
Loan-to-value was around 80%, putting the replacement facility’s value at $44.5 million, or $185,400 per bed. The new facility features 120 beds of traditional long-term care, 60 short-term rehab beds in private units, 30 beds in a high-acuity wing, and a 30-bed memory care unit. In the future, CHRE may also add an assisted living/memory care community plus some low-income housing on the campus.
