Capital One Refinances Illinois Nursing Facility
The $21.5 million fixed-rate HUD loan will be used to refinance Avantara Long Grove, a senior nursing facility in Long Grove, Ill.
By Roxana Baiceanu
Capital One provided a $21.5 million loan to Avantara Long Grove, a senior nursing facility in Long Grove, Ill. The fixed-rate HUD 232/223(f) credit has a 35-year term and will be used to refinance the property. Senior Vice President Joshua Rosen originated the transaction. Recently, the company secured a similar loan for a skilled nursing facility in Gresham, Ore.
“This transaction highlights the way new, updated LEAN regulations benefit borrowers,” said Rosen in prepared remarks. “In the past, owners who wanted to refinance their facilities after taking cash out had to wait two years before qualifying for an FHA loan. Under the new rules, the seasoning period is waived for borrowers with a lower LTV.”
The facility was built in 1995 at 1666 Checker Road, just 35 miles northwest of Chicago. It expanded between 2006 and 2007 and it currently has 195 beds available. Cascade Capital Group bought the property in 2016 and invested more than $3 million in improvements to the Medicare wing, therapy gym, front lobby, offices and conference room.
“We were able to successfully meet our strategic goals by investing a significant amount of capital expenditure funds in upgrading the property into a transitional care model and then successfully rolling the loan over into a low-interest, long-term 232/223(f) loan,” said Chaim Rajchenbach, Cascade Capital’s managing director & co-founder, in prepared remarks.
Image courtesy of Capital One