MidCap Financial Closes Refinances Assisted Living/Memory Care Community in Fort Pierce, Fla.

by Jeff Shaw

FORT PIERCE, Fla. — MidCap Financial, a specialty finance firm focused on the middle market in North America and Europe, has closed an $18.25 million term loan with Capital Health Group, LLC.

The loan, secured by a first mortgage on an existing 94-unit/124-bed assisted living/memory care facility in Fort Pierce, Fla., was structured with a $17 million initial funding, $250,000 interest reserve, and $1 million earn-out. The loan refinanced existing debt and provided a small dividend to the owners of the facility. The floating rate debt has a term of 60 months and is intended to serve as a bridge to the future sale of the facility or agency financing.

The facility is owned by CHG and managed by a related party management company, Compass Pointe Healthcare Systems. CHG is a privately held real estate company that was formed in 2006 to acquire and develop seniors housing communities. Compass Pointe is an affiliated management company that provides management services for all of the properties in CHG’s portfolio.

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