Lument Closes $87 Million Refinance for Portfolio of Skilled Nursing Facilities in the Midwest
New York, NY — Lument has announced the closing of an $87 million facility via the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Section 223(f) program to refinance nine skilled nursing facilities (SNFs) with a total of 691 beds located in Ohio, Michigan and Wisconsin. Six of the SNFs were recently awarded the U.S. News and World Report 2020-2021 Best Nursing Home Designation. Managing Director Brad Competty led the transaction for Lument.
The operator, Atrium Centers Inc., is a provider of short-term post-acute rehabilitation and long-term nursing care and operates 29 SNFs in Ohio, Michigan, Kentucky, and Wisconsin with over 2,000 total beds.
“Collaborating with Atrium Centers, an award-winning provider with a sterling reputation, was a pleasure from the outset, as we identified an ambitious set of goals and then formulated our strategy for a successful refinancing,” said Competty. “To maximize benefits for Atrium, we started with a thorough trend analysis that identified nine properties that had remained stabilized throughout the pandemic and were ready for HUD financing. We quickly built out the HUD applications and then worked closely with Atrium to navigate the underwriting and closing process. We commend the Atrium team for their commitment to the process and the stability of the projects’ operations throughout underwriting and closing.”
Ultimately, Lument was able to obtain low, fixed interest rates on all nine loans before the recent significant uptick in rates occurred.
“Closing this portfolio with favorable terms was no small feat, but Lument stepped up and delivered,” said Don Finney, president and CEO at Atrium. “The HUD expertise of Brad and the Lument team allowed us to move quickly and with accuracy, as evidenced by the fact that we gained approval on all nine loans without any changes in loan proceeds or debt service reserves required–a major accomplishment that directly resulted in lower rates and substantial savings.”
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.