New York, NY — Lument announced the closing of a $10.7 million loan to facilitate the acquisition of Bellevue Health & Rehabilitation, a 119-unit, 150-bed skilled nursing facility (SNF) in Oklahoma City, Oklahoma. Bill Wilson, managing director with Lument in Kansas, led the transaction for Lument.
To provide funding for the acquisition, Wilson tapped Lument’s debt syndications team, led by Steve McGee and Sangjin Na, to place the $10.7 million loan with a community bank. Proceeds from the loan were utilized by the long-time operator to acquire 100% ownership of the SNF.
“The bank loan turned out to be an ideal solution as it allowed the borrower to acquire the remaining partnership interests of the facility and fund the operating reserve,” said Wilson. Prior to the acquisition, the borrower owned 33% of the community.
The loan features a five-year term, with a minimum of two years of interest only, 25-year amortization and a fixed interest rate. In addition to funding the acquisition, the closing included $1 million for additional capital improvements.
“With full ownership now in place, we look forward to collaborating with the sponsor to put in place beneficial permanent financing via the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) within the next couple years, positioning Bellevue for long-term success,” Wilson added.
Bellevue Health & Rehabilitation has performed strongly post-pandemic, boasting a 98% occupancy rate as of late 2022. Originally built in 1970, the family owned and operated SNF features 88 private units and 31 semi-private units.
In addition to providing financing, Lument was able to identify expense efficiency opportunities via its clinical risk team, led by Bradley Granger and Jonathan Vega. The team identified significant opportunities to improve margins, including reducing nursing expenses, which should further help improve the performance of Bellevue and enhance the care provided to residents.
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and 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, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.