Regional Capital closes a $4,435,000 Bridge loan on a Skilled Nursing Facility
Floyd County, Georgia –100-bed skilled nursing facility receives Bridge Loan
Rome, Georgia (March 2007) – Regional Capital Group, LLC, a private short term real estate lender and investment company specializing in creative financing solutions, closed a $4,435,000 bridge loan on a 100-bed Skilled Nursing Facility. The facility is located on 6.49 acres consisting of approximately 34,510 SF just outside Atlanta, Georgia. It opened in 1983 and is described as a Williamsburg style with large dining, lounge, office, laundry facilities, chapel, and therapy areas. The subject includes space typically designed for Nursing Home occupancy including, offices, a lobby, activity department, physical therapy room, beauty shop, kitchen and dining areas, laundry, therapy and examination rooms, living rooms and nurses’ stations. There are currently 100 beds and the facility carries an average occupancy of approximately 96.00%.
This facility was built by the current operator and his father, who have owned it since its inception in 1983. He also runs two other successful skilled nursing facilities in Georgia. All three have good cash flow. Over the past five years, this facility posted an average occupancy rate of over 95.00%. The current owner recently took over as the operator of the facility following default on the lease obligation by a former National Operator. During the transition period, the borrower made numerous improvements to the facility and spent a large portion of his personal funds in doing so. RCG’s loan will position the facility to receive permanent financing.
RCG structured a six-month, interest-only bridge loan to assist the facility’s Operator in repositioning this facility for long-term permanent financing. A few of the determining factors which ultimately led to the loans approval included; the experience and history of the Operator, the low loan-to-value, the high and consistent occupancy rate of the facility and the exit strategy.
ABOUT REGIONAL CAPITAL GROUP
RCG is a private short term real estate lender focused on creative funding solutions. The team at RCG brings extensive experience in all aspects of real estate lending, investment and development. Funding programs include every piece of the capital stack which may be structured as senior debt, mezzanine, participating loans or equity. We take pride in the ability to provide immediate feedback to a borrower and to structure a unique and timely solution to an untraditional funding request.
A direct commercial lender with over 50 years of combined experience and total funding of asset-based loans in excess of $3 billion, RCG was founded over 10 years ago by Paul P. Braungart with the fundamental philosophy of providing clients with a creative and specialized source of funds with maximum flexibility. As our portfolio grows,
RCG continues to create innovative loan structures to meet the increasing demands of our specialized clients.
RCG provides viable alternatives to requests that are outside of traditional lending parameters or require a timely closing to take advantage of an opportunistic situation.
Our experience has taught us how to recognize opportunities that other lenders and investors may have overlooked. Loan types include Land, Land Improvement & Development, Construction and Bridge funding. Acceptable property types are Residential Spot Lot or Tract, Multifamily, Urban Rehab, Mixed Use, Office, Retail, Industrial and Self Storage. Other property types are considered on a case by case basis. When we are presented complete information, loan turn around time is among the most expedient in the industry.
