Marcus & Millichap Capital Corporation (MMCC), a division of Marcus & Millichap (NYSE: MMI), has arranged $18.42 million in acquisition and conversion financing for a newly constructed, state-of-the-art healthcare asset located in Temple, Texas.
MMCC secured a lender and joint venture equity partner to provide funds to acquire and convert the asset into a long-term acute care hospital (LTACH). Following the conversion, the facility will include 10 ICU Beds, 13 Rehab Beds, and 30 LTAC Beds for a total of 53 beds. The facility will be operated by KPC
Health, a division of KPC Group (KPC), and an industry leader in healthcare and LTACH operations. KPC has amassed over $10 billion in assets, including hospitals, clinics, schools, commercial real estate
properties and agricultural research centers.
MMCC worked on behalf of the borrower, a partnership between Todd Harmon, his partners and KPC, to
secure the loan through an independent community bank and funded the non-recourse loan for the deal.
Headquartered in Midland, Texas, the bank predominantly serves the communities of West Texas, North
Texas, the Texas Panhandle and the Texas Hill Country. MMCC secured the joint venture equity through
an out-of-state real estate private equity firm.
MMCC’s Capital Markets team was led by Senior Director Kevan McCormack based out of MMCC’s
Dallas office. Kevan’s practice includes a focus on financing healthcare and senior living oriented real
estate projects.
MMCC Senior Director, Kevan McCormack said, “The Pandemic has taught us about the state of the
healthcare industry and the demand for increased bed counts. This project will satisfy this critical
requirement and will serve its community for decades to come.”
