Red Oak delivered $5,615,000 in acquisition financing for an existing 25-bed acute care hospital campus located in Plymouth, NC. The facility at 958 US-64 includes an additional four medical office buildings, two general office buildings, and an additional 16 acres of land, or out-parcels, available for future development.
The facility was acquired from the federal court system, which controlled the property and had assigned the management of asset to Affinity Health Partners. The borrower is an experienced national healthcare management provider, which had been managing and operating the facility for the past nine months.
The high visibility property is located south of Norfolk/Virginia Beach, VA in a residential community with many other supporting and complimentary business operations. The facility offers a strong community presence with critical support services. It was fully licensed and operating, however needed upgrades to the facility. The property was approved as a licensed COVID-19 provider by the government and is certified for treatment and testing.
The property had an existing operational history, and the loan featured a low LTV. Once the project is stabilized in approximately six months, a conventional loan will be put in place.