May 18, 2021

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Lument Arranges $168 Million Bridge-to-HUD Financing for Skilled Nursing Portfolio

NEW YORK, April 26, 2021 / PRNewswire / – Lument arranged a $ 168 million Bridging loan for a portfolio of a qualified care facility (SNSF) on behalf of the Mitchell Family Office (MFO), a Michigan-based investment firm focusing on the healthcare industry. The proceeds of the loan funded the acquisition of American Health Partners ‘skilled nursing division and were part of a larger acquisition plan in which MFO acquired all of American Health Partners’ interests at an undisclosed price. The transaction led the way for Lument Conner Girdley, Senior Housing and Healthcare Director, and Brandon Gill, Vice President for Debt Consortia.

American Health Partners previously owned an Employee Stock Ownership Plan (ESOP), which has made significant investments in recent years to meet the changing needs of its residents for long-term care. Recognizing the consolidation in the long-term care space and the significant capital investment it would take to keep the business moving forward, American Health Partners management focused on finding an ideal partner.

“MFO is the right investment partner at the right time,” he said Jeff Bogle, Chief Financial Officer of American Health Partners. “MFO has the healthcare expertise and financial resources to improve stability, strengthen our foundations, and provide the capital needed to grow our business.”

Lument was hired as an agent in late summer 2020.

“We quickly decided that the bridge-to-HUD funding was the best execution and the best terms for the SNSF portfolio,” said Lument’s Conner Girdley. “As the leading FHA senior housing and healthcare lender over the past decade, we were well positioned to receive the bridging loan and then initiate HUD refinancing.”

The bridging loan will be refinanced through the FHA Section 232/223 (f) program, a process that Lument has already begun. The benefits of FHA funding include a long term no recourse loan with a low fixed rate rate.

“Managing the acquisition of a modern day care company during the COVID-19 crisis was challenging, but Lument was able to expertly execute an essential aspect of our financial plan during these challenging times,” he said Mark Mitchell, Founder and managing partner of MFO.

American Health Partners consists of seven different departments: American Health Communities, consisting of 29 SNFs; Rehab america, focused on inpatient and outpatient rehabilitation services; American Health Plans, which offers Medicare Advantage Institutional Special Needs Plans (I-SNPs); TruHealth, which coordinates care and provides improved bedside treatment to residents of long-term care facilities; Unity Psychiatric Care, which provides acute psychiatric and behavioral care; Tennessee Quality Care, which provides home health, private nursing, and hospice services; and AmPharm, which provides institutional pharmacy services.

About Lument
ORIX Real Estate Capital Holdings, LLC (d / b / a Lument) is a subsidiary of ORIX Corporation United States. Lument is a national leader in commercial real estate finance. As a combined organization of industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, Lument offers a comprehensive suite of capital solutions tailored to investors in apartment buildings, affordable housing, and senior housing and healthcare properties. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA and USDA lenders. In addition, Lument offers a range of proprietary solutions for commercial credit, investment banking and investment management. Securities, investment banking and advisory services are provided by OREC Securities, LLC, d / b / a Lument Securities, a member of FINRA / SIPC. For more information, visit www.lument.com.

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SOURCE Lument