Dealmaker: Eastern Union Closes $57M for Skilled-Care Facilities

Eastern Union, New York, secured a $57 million bridge financing package for two skilled-care facilities in Florida and two in Massachusetts. The facilities house 544 beds in total.

Nachum Soroka, Director of Eastern Union’s Healthcare Group, worked with Senior Vice President Jacob Schonland, company president Ira Zlotowitz and Capital Markets Specialist Michael Wyne on the transaction.

Image courtesy of Eastern Union

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 skilled nursing and assisted living services. The second was a 146-bed center in Venice that delivers assisted living, memory care and skilled nursing services.

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

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

“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,” Schonland said. “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.”