Eastern Union closes $57 million in financing for four skilled-care facilities

Salem, MA The Healthcare Group of Eastern Union has secured a $57 million bridge financing package that encompasses two skilled-care facilities in Florida and two more in Massachusetts. The four facilities carry an overall count of 544 beds.

Nachum Soroka serves as director of Eastern Union’s Healthcare Group. Senior vice president Jacob Schonland plays a key role on the team.

The two senior-care facilities in Florida represented $26 million of the overall transaction. The first was a 133-bed facility in Naples, that provides a combination of skilled nursing and assisted living services. The second senior-care asset was a 146-bed center in Venice, that delivers assisted living, memory care, and skilled nursing services. Both Florida transactions were secured in cooperation with Eastern Union’s “President’s Team” consisting of company president Ira Zlotowitz and capital markets specialist Michael Wyne.

The $31 million balance of the overall transaction tied in the recapitalization of two assets in Massachusetts. The first was a 123-bed skilled nursing facility in Salem. The second was a 142-bed skilled nursing facility in Wilmington.

The overall financing package, covering a three-year term, was secured on a limited recourse basis at an 85% loan-to-value ratio. Payback is interest-only for the first 24 months. Interest was set at a competitive floating rate.

“Because of their distinctive nature as an asset class, real estate transactions involving senior care facilities require specialized expertise,” said Mr. Soroka. “Owners around the country have been increasingly taking note of Eastern Union’s consistent ability to deliver competitive rates and terms.”

“Eastern Union was able to get the lender comfortable with a high loan-to-value ratio and with the value-added nature of the deal,» said Mr. Schonland. “While a number of lenders are understandably acting more cautiously because of the pandemic, we were able to demonstrate that the sponsorship and business plan were both sound and investment-worthy.” 

Eastern Union’s Healthcare Group services owners and operators of skilled nursing and assisted living/memory care facilities, continuing care retirement communities, and hospitals nationwide, arranging acquisition loans, bridge and HUD financing, A/R advance lines, cash-outs, partnership buyouts and permanent debt placement.