Cambridge Realty Capital Companies reports arranging three loans to fund three Ohio properties owned by Continuing Healthcare. The deals included a $6,080,000 HUD Lean loan to refinance The Suites at Continuing Healthcare in Niles, OH; a $6,400,000 HUD Lean loan to refinance Continuing Healthcare of Milan in Milan, OH; and a $15,920,000 HUD Lean loan to refinance Continuing Healthcare of Niles in Niles, OH. The Suites at Continuing Healthcare in Niles is an assisted living facility. Both Continuing Healthcare of Niles and Continuing Healthcare of Milan are skilled nursing facilities.
Jeffery A. Davis, Cambridge Chairman, said the fully-amortized loans (two 35-year loans and one 33-year loan) were arranged for the owner, an Ohio limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program. Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.
In a unique collaboration between Cambridge Realty Capital Companies’ two business units, Cambridge Realty Capital, LLC and Cambridge Realty Capital Ltd. of Illinois, the long-term real estate owner and prior operator was able to reach its goal to sell the three buildings, and the lessee/current operator achieved its goal to become owner of the three properties.
The buildings were put up for sale by the prior owner, a long-term skilled nursing operator in the Youngstown, Ohio area. During the 6-month marketing period, the performance of the facilities waned and the real estate owner changed their strategy and brought in a new operator who signed a long-term net lease.
Cambridge developed an ongoing relationship with the lessee, whose goal was to ultimately to own the three nursing homes, and helped the lessee and the lessor come together in a friendly sale.
“Cambridge LLC and Cambridge of Illinois collaborate daily on various transactions,” Mr. Davis said. Cambridge LLC was effectively the seller’s representative and Cambridge of Illinois worked primarily with the ultimate HUD borrower.
“It’s all in a day’s work,” said Cambridge founder Davis. “The unique set of circumstances in this transaction needed a much more creative structure and without multiple skill sets coming together, this closing never would have taken place.”