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Chicago SNF Portfolio Refinance
MIG secured a cash-neutral refinance for a 180+ bed Chicago SNF outside HUD eligibility.
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Overview
MIG was engaged by a repeat client to navigate a complex refinance involving a 180+ bed nursing home in Chicago that was part of a three-property portfolio. While the other two facilities were positioned for a 232 HUD takeout, the subject property experienced a series of challenges that led to a decline in NOI, making it ineligible for HUD financing. At the same time, the existing lender was unwilling to release the two stabilized assets to HUD while retaining the underperforming facility as a standalone exposure.
Results
MIG conducted a detailed review of the operational and clinical challenges experienced over the past year, as well as the corrective initiatives implemented and recent performance improvements. Based on this analysis, MIG narrowed its lender network to identify the right fit. The selected regional lender, a specialized healthcare lender, was able to underwrite the full story, gain comfort with the recent stabilization, and ultimately deliver a cash-neutral solution, including a $12.9MM term loan and a $1.5MM revolving line of credit.
Conclusion
This transaction highlights MIG’s ability to understand the intricacies of skilled nursing operations, clearly articulate operational developments, and align complex deal profiles with the right lending partners.
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