New York, NY – Lument announced the closing of a $35.6 million U.S. Department of Agriculture (USDA) Community Facilities (CF) loan to fund the construction of Centre Care Rehabilitation and Wellness Services, a 240-bed skilled nursing facility (SNF). Located in Bellefonte, Pennsylvania, the new SNF will replace an existing 240-bed facility that was deemed unsuitable for substantial renovations due to its age and location.
Miles Kingston, director at Lument, worked with Complete Healthcare Resources Eastern (CHRE) to develop and execute the financing strategy. CHRE is an experienced management company that has managed and operated Centre Care since 2013, and currently operates 20 facilities in Pennsylvania and Maryland with nearly 4,000 beds across all acuity levels.
The first step in the process was to arrange construction financing through a $35.6 million bridge loan from First National Bank. Once construction was complete, Lument facilitated the closing of the $35.6 million USDA CF direct loan to pay off the construction financing and install a permanent debt structure with a low, fixed interest rate and 36-year term.
“CHRE has been working on this strategy for several years and we were thrilled to work with them in getting this deal across the finish line,” said Lument’s Kingston. “Most importantly, the residents of Centre Care are now able to reside in a state-of-the-art community that truly meets their needs and is a vast improvement over the previous facility.”
“We couldn’t be more excited to move our residents into the new and improved Centre Care community,” said Todd Wagner, vice president, financial management and business development at CHRE. “The staff and residents showed patience and fortitude as they endured the challenges of COVID while in the old building. Now, they are able to move into a brand new facility and things seem to be moving in a positive direction overall. They particularly seem to be enjoying the experience of restaurant style dining in their new home.”
The new Centre Care community features separate specialty neighborhoods with accommodations for 30 residents in memory support, 30 residents in a high-acuity wing, 60 residents in short-term rehabilitation and private suites, and 120 residents in traditional long-term care. Future plans include the addition of an assisted living memory care community as well as adding low-income housing to the campus.
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. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.