Property Type: Nursing Home Dev Loan Amount: $6,000,000 Loan: Construction and Permanent Financing Transaction Summary:
A second-generation owner inherited an aging 33-bed nursing home that was losing money. At the time of our engagement, the client had little cash and was facing licensing issues and imminent foreclosure. New York Commercial Lending was retained as a strategic advisor and lender to (i) evaluate the highest and best use for the site; (ii) assess new market opportunities to enhance revenues, and (iii) to outline financing alternatives for a new facility. New York Commercial Lending assisted the client in securing a DON to build a replacement facility, and identified the need for Alzheimer’s ALF beds to improve NOI to the level needed to support the project. We then located a contractor willing to do an identity of interest that would provide the capital necessary to meet the project’s cash requirements. New York Commercial Lending then processed and funded a $6,200,000, 40 year, fixed rate, non-recourse, construction to permanent loan under HUD’s Section 232 program. The client is now positioned for success.