Trio of transactions
The Healthcare Lending group of Congressional Bank recently announced that it closed three separate transactions (with five loans) totaling $11.6 million, which all helped facilitate acquisitions for the borrowers. First, Congressional provided a $3 million bridge-to-HUD loan and a $1.5 million revolving line of credit, both with three year terms, to fund the purchase and ongoing capital needs of a 107-bed skilled nursing facility in New Bedford, Massachusetts. The buyer, a regional owner/operator, paid $3.21 million for the 40-year old facility, which was losing money and was 82% occupied. Second, Birchwood Health Care Properties received a $2.6 million bridge-to-HUD loan and a $500,000... Read More »Pay the rent
After recently acquiring three skilled nursing facilities in Kansas (two of which were turnarounds), Birchwood Health Care Properties acquired another skilled nursing facility in need of some care, this time in Huntington, West Virginia. The facility, which includes 41 skilled beds and 17 assisted living units, was originally built in 1928 but was renovated in 2009. And despite having a stabilized occupancy at 90%, it was losing money. This was the only senior care asset of the owner, who decided to sell the facility when their operator tenant stopped paying rent and filed for bankruptcy. Enter Birchwood, which purchased the facility for $3.2 million, or $55,200 per bed/unit and brought in... Read More »