St. Paul, Minn.-based Oak Grove Capital, a provider of real estate financial services, recently arranged an $8.9 million bridge loan to facilitate the acquisition of Hugh Chatham Nursing Center, a 127-bed skilled nursing and assisted living facility in Elkin, N.C. The high-leverage balance sheet loan was provided by a correspondent lender with whom Oak Grove Capital has a long-standing relationship.
The borrower, an affiliate of Cary-based Century Care Management, will complete capital improvements and execute a business plan to improve property performance. Given the unique circumstances, Oak Grove Capital structured the debt using an outside financing source to ensure the borrower’s specific goals and objectives were met. Upon stabilization at the new operating levels, the borrower will seek to refinance the bridge loan through an FHA/HUD 232/223(f) permanent loan provided by Oak Grove Capital.
Joel Mendes, senior vice president in Oak Grove Capital’s Seniors Housing and Healthcare team, was the lead banker on the financing.