Eastern Union Closes $57M Bridge Loan for Skilled Nursing Portfolio
The Healthcare Group of commercial real estate finance firm Eastern Union has secured a $57 million bridge financing package for two skilled nursing facilities in Florida and two in Massachusetts. The four facilities carry an overall count of 544 beds.
The two senior-care facilities in Florida represented $26 million of the overall transaction. The $31-million balance of the overall transaction tied in the recapitalization of two assets in Massachusetts. The first was a 123-bed skilled nursing facility in Salem. The second was a 142-bed skilled nursing facility in Wilmington.
The overall financing package, covering a three-year term, was secured on a limited recourse basis at an 85-percent loan-to-value ratio. Payback is interest-only for the first 24 months. Interest was set at a competitive floating rate. The borrower was not disclosed.
“Eastern Union was able to get the lender comfortable with a high loan-to-value ratio and with the value-added nature of the deal,” said Jacob Schonland, senior vice president at Eastern Union’s Healthcare Group. “While a number of lenders are understandably acting more cautiously because of the pandemic, we were able to demonstrate that the sponsorship and business plan were both sound and investment-worthy.”