Arbor Realty Trust, Inc. announced the funding of a $41,650,000 bridge loan for the acquisition of James Square Health and Rehabilitation Center, a 440-bed skilled nursing facility located in Syracuse, NY.
Alexander Kaushansky, Vice President, Originations at Arbor Realty Trust, arranged financing for the property, which offers long-term nursing and rehabilitation services.
The bridge loan carries an initial term of 36 months and was underwritten with plans for a HUD takeout loan upon completion of the business plan.
“This was a very complex transaction, but we were able to get behind the business plan to offer the most aggressive terms possible,” Kaushansky said. “In the end, it was a pleasure working with a team so passionate about breathing new life into this facility.”
New York-based seniors housing and healthcare firm VestraCare acquired James Square from a Chicago-based seller.
The new ownership has immediate plans to appoint a new property administrator, retrain staff, rebrand the community and invest over $4,000,000 in capital improvements as part of an overall repositioning strategy.
Edward Farbenblum, a tenured healthcare operator and principal at VestraCare, has successfully executed similar turnaround strategies at three other skilled nursing facilities in New York State.
“James Square is a well-located property in close proximity to Syracuse’s medical district that unfortunately has experienced more than its fair share of struggles,” Farbenblum said.
“We were quickly able to identify several areas for physical and operational improvements, and are grateful for being connected to a financial partner like Arbor who was able to see our vision for the property.”
Evan Goldenberg of EBEX Holdings assisted all parties in the financing. Ari Dobkin, Managing Director at Meridian Capital Group, represented Farbenblum to Arbor. James Square features two, four-story nursing facilities built in 1970 and 1982 and a single-story maintenance facility constructed in 2014, all situated on 5.5 acres.