Work-In, Cash-Out in the Tri-Cities... Vol. 1
Blueprint leverages its capital markets expertise and robust analytics capabilities to arrange a cash-out refinancing for a pair of Green Lake Senior Living communities acquired during COVID
Located in the Tri-Cities area in Washington State, the two communities totaling approximately 160 beds were purchased during COVID as value-add communities from a pair of national operators looking to transition away from operating older vintage, class C communities.
Green Lake Senior Living, a Washington owner-operator already in this market, was able to quickly and drastically improve performance through hands-on management and presence at the communities in conjunction with fully adopting the state’s generous Medicaid program to make quality care attainable for a wider subset of the local population.
Blueprint strategically marketed the refinancing opportunity to a select group of national debt funds and banks focused on Bridge to HUD opportunities. This group of lenders was identified as the best suited to maximize borrower leverage in the short term and provide a path to non-recourse permanent financing in the intermediate term.
Blueprint ran a competitive process, obtaining multiple indications of interest from both debt fund and bank lenders. Ultimately VIUM, a national debt fund affiliated with Merchant’s Bank of Indiana, was chosen based on the strength and flexibility of their terms. The refinancing was structured to provide meaningful cash out today, an earnout for additional proceeds once the communities are fully stabilized, and a path to a non-recourse execution through HUD.
Despite the holiday calendar, the financing closed in less than 3 months from the signing of a term sheet, providing the borrower with excess funds to re-invest in the business and capitalize the next round of acquisitions.