New York, NY – Lument has arranged a $168 million bridge loan for a skilled nursing facility (SNF) portfolio on behalf of Mitchell Family Office (MFO), a Michigan-based investment firm focused on the healthcare industry. Proceeds of the loan funded the acquisition of the skilled nursing division of American Health Partners and was part of a larger acquisition plan in which MFO acquired all the interests of American Health Partners for an undisclosed price. Leading the transaction for Lument were Conner Girdley, director for seniors housing and healthcare, and Brandon Gill, vice president for debt syndications.
American Health Partners was formerly owned by an employee stock ownership plan (ESOP) that made substantial investments in recent years to meet the evolving needs of its long-term care residents. Recognizing the consolidation taking place in the long-term care space and the substantial capital investment that would be required to continue fueling the business, management at American Health Partners focused on finding an ideal partner.
“MFO is the right investment partner at the right time,” said Jeff Bogle, chief financial officer, American Health Partners. “MFO has the healthcare expertise and financial resources to enhance stability, strengthen our foundation, and provide the necessary capital to grow our business.”
Lument was brought in as a placement agent in late summer of 2020.
“We quickly decided that bridge-to-HUD financing would provide the best execution and terms for the SNF portfolio,” said Lument’s Conner Girdley. “As the leading FHA seniors housing and healthcare lender for the past decade, we were well-positioned to obtain the bridge loan and initiate the subsequent refinance via HUD.”
The bridge loan will be refinanced using the FHA Section 232/223(f) program, a process Lument has already begun. Benefits of FHA financing include a long-term nonrecourse loan with a low, fixed-rate pricing.
“Navigating the acquisition of a modern long-term care business during the COVID-19 crisis was a challenge, but Lument was able to expertly execute an essential aspect of our finance plan during these challenging times,” said Mark Mitchell, founder and managing partner of MFO.
American Health Partners is comprised of seven different divisions: American Health Communities, consisting of 29 SNFs; Rehab America, focused on inpatient and outpatient rehabilitative services; American Health Plans, which offers Medicare Advantage institutional special needs plans (I-SNPs); TruHealth, which coordinates care and provides enhanced bedside treatment for residents in long-term care facilities; Unity Psychiatric Care, which offers acute psychiatric and behavioral care; Tennessee Quality Care, offering home health, private duty nursing and hospice services; and AmPharm, which offers institutional pharmacy services.
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 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. For more information, visit www.lument.com.