Vrable bought the two facilities, Southern Hills Skilled Nursing and Rehabilitation Center in Middleburg Heights, and Abbyshire Place Skilled Nursing and Rehabilitation Center in Bidwell, through two subsidiaries that have operated them for the past five years under an option to purchase.
Robert Smallwood, Love Funding’s first vice president for its Cleveland office, secured both loans through the Federal Housing Administration’s 232/223(f) LEAN loan program for long-term care facilities. This allowed Vrable to protect earned purchase deposits that were credited toward FHA’s equity requirements for the financing, as well as significant investments its subsidiaries made in equipment and improvements.
“This was our first experience with the LEAN process and Bob’s knowledge of the LEAN program and his experience with the LEAN process was invaluable to the transaction,” said Al Vrable, president, chief executive officer and owner of Vrable Healthcare, in a statement. “He assisted us through each step of the transaction and kept us completely up to date as our projects moved through LEAN’s processing queue and into closing.”
The loan financing follows Love Funding’s record number of closings in July, when it completed 11 transactions totaling $216.7 million.
Written by Alyssa Gerace