CapitalSource said it has launched a new healthcare construction finance program to help skilled nursing providers upgrade their physical plants. The program is designed to provide funding for the replacement or substantial renovation of skilled nursing facilities, which will allow the facilities to be transformed, repositioned in local markets and better equipped to deliver quality care.
Under this new program, CapitalSource will provide loans to skilled nursing owners and operators with market-based pricing depending on leverage and credit. The structure includes up to two years for the construction period with rollover to a four to five-year mini-permanent loan. The loan-to-cost will be up to 75%, and terms will include a 25-year amortization schedule on the principal balance after the construction phase has ended.
“Our new healthcare construction finance program enables us to leverage our extensive experience in the senior housing and skilled nursing industry,” noted Laird Boulden, president of CapitalSource and chief lending officer of CapitalSource Bank. “The need for substantial renovation or replacement of skilled nursing properties is currently very strong, and we expect this trend will continue to increase for the foreseeable future. The timing was perfect to launch this new program to utilize our historic expertise to help investors and operators meet current market demands and deliver quality care.”