CIT’s healthcare finance unit provided a $25 million loan supporting Seavest Healthcare Properties’ acquisition of the MLK Community Hospital Medical Office Building in Los Angeles. The private, nonprofit hospital provides essential healthcare services for residents of the Watts, Compton and Willowbrook neighborhoods of South Los Angeles.
“We’re pleased to leverage our expertise to create a financing solution that meets Seavest’s investment objectives,” William Douglass, managing director and group head for CIT’s healthcare finance unit, said. “This effort advances the hospital’s mission while helping to drive transformative change and further revitalize the Watts area.”
MLK Community Hospital is part of a public-private partnership with Los Angeles County and was established in 2015 to meet the needs of the South Los Angeles community, including the uninsured and underinsured. Efforts to create additional offerings are in development, including outpatient testing, physical therapy, durable medical equipment, chronic care treatment facilities and other health related services.
“We’re pleased to work with CIT on this transaction and to expand our portfolio in Los Angeles,” John Winer, senior managing director and chief investment officer for Seavest Healthcare Properties, said. “This acquisition provides the opportunity to invest in a newly developed, on campus outpatient facility in South Los Angeles and to assist in delivering critical healthcare services to the area’s 1 million residents.”
CIT’s healthcare finance unit, part of the commercial finance division, provides financing and banking solutions to middle market healthcare companies across the U.S. This financing follows CIT’s recent $47 million investment in the Jordan Downs Apartment Project to develop a 92-unit multifamily apartment complex in the Watts neighborhood.
“Our community needs our support now more than ever,” Steve Solk, president of consumer banking at CIT, said. “We’re pleased to play a key role in this transaction and continue our investment in the Watts neighborhood and surrounding areas during this challenging time.”
CIT expects to make further investments in the Watts community later this year, including a new branch in the area.