Lument Arranges $10.7M Acquisition Loan for Bellevue Health & Rehabilitation in Oklahoma City

by Jeff Shaw

OKLAHOMA CITY — Lument has arranged a $10.7 million loan to facilitate the acquisition of Bellevue Health & Rehabilitation, a 119-unit, 150-bed skilled nursing facility (SNF) in Oklahoma City.

Bill Wilson, managing director with Lument in Kansas, led the transaction for Lument. To provide funding for the acquisition, Wilson tapped Lument’s debt syndications team, led by Steve McGee and Sangjin Na, to place the loan with a community bank.

Proceeds from the loan were utilized by the long-time operator to acquire 100% ownership of the facility. Prior to the acquisition, the borrower owned 33% of the community.

The loan features a five-year term, with a minimum of two years of interest-only payments, 25-year amortization and a fixed interest rate. In addition to funding the acquisition, the closing included $1 million for additional capital improvements.

“With full ownership now in place, we look forward to collaborating with the sponsor to put in place beneficial permanent financing via the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) within the next couple years, positioning Bellevue for long-term success,” says Wilson.

Bellevue Health & Rehabilitation has performed strongly post-pandemic, boasting a 98 percent occupancy rate as of late 2022. Originally built in 1970, the property features 88 private units and 31 semi-private units.

In addition to providing financing, Lument was able to identify expense efficiency opportunities via its clinical risk team, led by Bradley Granger and Jonathan Vega. The team identified opportunities to improve margins, including reducing nursing expenses, which should further help improve the performance of Bellevue.

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