Paradigm Commercial affiliate, Senior Care Capital, has closed a $192,500,000 credit facility, to facilitate the purchase of 16 skilled nursing facilities located throughout Illinois and Missouri.
The loans, which represented a 92 percent loan-to-cost ratio, comprised of a senior first mortgage of $167,500,000, and several tranches of Senior and Junior mezzanine financing, as well as a $5,000,000 preferred equity tranche, totaling $25,000,000.
The senior lender was HUD / FHA and the junior lenders were several mezz and private equity shops.
Michael Edery, principal of Paradigm Commercial Real Estate LLC, commented, “While the super junior tranches were priced in the mid-teens, given the fact that they were small relative to the competitively priced senior loan, the overall constant remained very favorable.
“This enabled the borrower to purchase the large package using only $16,740,000 of his own cash towards closing, thereby leaving significant funds towards Capex and rehabilitation. The client estimates increasing the censuses within 12 months, leaving him with fertile ground for a significant recapitalization.ˮ
The borrower, a Midwest-based group, is a respected operator of skilled nursing facilities, with a primary focus on the Midwest and the South