Bedford Lending provided financing for a client to refinance their nursing home. The $3.3M loan paid off the bank loan and funded capital improvements. The loan lowered the interest rate from 8.75% to 6.20% and extended the term from 15 to 35 years, resulting in a $12,000 monthly savings in mortgage payments.  The new loan is non recourse and has an assumable feature which will allow the owner to transfer the property to their children in the coming years.

Our client’s private SNF census was declining due to the opening of several newer long-term care facilities. Our client knew an expansion and renovation was key in order to retain and attract private pay census. Bedford Lending conducted a financial feasibility modeling session that supported the renovation and ALF addition. We then helped our client interview and engage the market study provider, appraiser, contractor, architect and a project manager/development advisor. Bedford Lending funded a 40 year construction to permanent loan, under HUD’s 232 program that paid off the bank and allowed for renovations to the nursing facility and a 52 bed assisted living addition.

Bedford Lending provided permanent financing and working capital for a client to purchase an under performing nursing home in New England. Our client owned two small facilities and desired to use him turnaround experience to restore the operation to a profitable level. The borrower’s loan request was denied by ten lenders because of their concerns with the industry, their inability to evaluate the upside potential with the operation and their concerns with underwriting the loan based on projections. As part of the evaluation process, we completed an extensive comparative analysis, which compared the projections against 20 other nursing properties. The loan financed 80% of the acquisition price and a working capital to cover the cash flow shortfall during the transition period.

Bedford Lending was engaged to: (i) complete due diligence (ii) develop an optimal funding solution (iii) evaluate construction costs and (iv) assist the client in securing a $475,000 Community Grant, which was needed to bridge the equity requirement. BLC worked closely with the Housing Agency and was instrumental in securing the community grant. In addition, we recommended using modular construction, which saved the client an estimated $300,000. Bedford Lending processed and funded a 40-year, non-recourse, and 90% construction to permanent mortgage. Between the grant and HUD financing, it effected 100% financing and the borrower was only responsible for funding the working capital and initial operating deficit.