Healthcare Bridge Loan Program

Through our HUD lending platform, we have become a leading lender for skilled nursing and assisted living facilities.  In 2006 we launched a Healthcare Bridge Loan program, offering expedited access to the HUD fixed-rate permanent loan program, combining the benefits of Capital Markets timing while obtaining the high leverage, long term benefits of a HUD loan.

ELIGIBLE PROPERTIES: 
Existing skilled nursing, assisted living,  Alzheimer/dementia, board and care and combinations with Independent Living and/or Congregate Care which meet HUD eligibility criteria.

LOAN TYPE AND TERM: 
Floating rate mortgages with terms of 12 to 24 months (may be extended upon achievement of performance standards).

PREFERRED LOAN SIZE: 
$5 million - $15 million.

MAXIMUM LOAN:
Up to 85% of value. Earn-outs in excess of transaction costs will be permitted based upon achievement of certain debt service coverage ratios.

INTEREST RATES: 
LIBOR based. Rates vary by loan-to-value ratio, debt service coverage, facility quality and underwriting risk assessment.

AMORTIZATION: 
Interest only.

RECOURSE: 
Loan will be full recourse to financially strong and credit worthy
Key Principal(s).

BRIDGE LOAN USES:
Bridge financing for:

• Acquisition
• Refinance of new, but stabilized properties
• Facilities requiring repairs and renovations may be eligible
• Buy-out of partner

FINANCING FEE:
Competitive.

TIMEFRAMES:
Expedited closings available for time sensitive transactions.

OTHER TERMS:

• Professional and general liability insurance required (must meet minimum HUD insurance requirements) in addition to property damage.
• Single asset entity required, no cross collateralization.
• Subordinate financing not permitted.

PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:

1. Facility description and location map.
2. Current census mix and year-to-date operating statement.
3. Operating history for the prior 3 years.
4. Current year operating budget.
5. Schedule, scope, description and budget of any planned improvements.
6. Projected 3 year operating income and expense analysis.
7. Existing debt and cost basis.
8. Medicaid and Medicare rate letters.
9. Resumes for owner and operator.
10. Financial statements of owner.