TEXAS — Lancaster Pollard Mortgage Company has arranged two bridge loans totaling $42 million for The Aboretum Group.
The financing package will recapitalize five skilled nursing facilities in Texas. In addition, the firm submitted an application to HUD/FHA for the direct refinance of a sixth facility. The specific names and locations of the properties were not disclosed.
In the first bridge loan, Lancaster Pollard provided a $12 million loan with a 12-month term for two facilities in South Texas. The transaction refinanced existing debt and provided equity-out proceeds. The bridge and HUD loans were underwritten concurrently, allowing for the immediate submission of the HUD applications following closing of the bridge loan.
In the second transaction, Lancaster Pollard agented with syndicate partner MB Financial Bank on a $30 million, 30-month bridge loan commitment for three facilities in South Texas. The loan included two three-month extension options and earn-out provisions. The closing allows the borrower to extract equity in addition to refinancing existing debt. The loans will ultimately be replaced with permanent financing through HUD/FHA.
Scott Blount, Chris Mauger and Eric Sengpiel led Lancaster Pollard for the transactions, and Joe Munhall led the syndication efforts.