Lument Arranges $168M Bridge-to-HUD Financing for Mitchell Family Office Skilled Nursing Portfolio

by Jeff Shaw

BIRMINGHAM, Mich. — Lument has arranged a $168 million bridge loan for a skilled nursing portfolio on behalf of Mitchell Family Office (MFO), a Birmingham-based investment firm focused on the healthcare industry.

Proceeds of the loan funded the acquisition of the skilled nursing division of American Health Partners and was part of a larger acquisition plan in which MFO acquired all the interests of American Health Partners for an undisclosed price. Leading the transaction for Lument were Conner Girdley, director for seniors housing and healthcare, and Brandon Gill, vice president for debt syndications.

American Health Partners was formerly owned by an employee stock ownership plan (ESOP) that made substantial investments in recent years to meet the evolving needs of its long-term care residents. Recognizing the consolidation taking place in the long-term care space and the substantial capital investment that would be required to continue fueling the business, management at American Health Partners sought out a partner.

Lument was brought in as a placement agent in late summer of 2020. The bridge loan will be refinanced using the FHA Section 232/223(f) program, a process Lument has already begun. Benefits of FHA financing include a long-term nonrecourse loan with a low, fixed-rate pricing.

American Health Partners comprises seven different divisions: American Health Communities, consisting of 29 SNFs; Rehab America, focused on inpatient and outpatient rehabilitative services; American Health Plans, which offers Medicare Advantage institutional special needs plans (I-SNPs); TruHealth, which coordinates care and provides enhanced bedside treatment for residents in long-term care facilities; Unity Psychiatric Care, which offers acute psychiatric and behavioral care; Tennessee Quality Care, offering home health, private duty nursing and hospice services; and AmPharm, which offers institutional pharmacy services.

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