Capital One announces $41 million in senior credit

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Capital One has provided a $41.1 million first mortgage and $5 million senior credit facility for Prestige Care in Oregon, the company said.

Prestige Care used the loan to refinance three facilities: Coast Fork Nursing in Cottage Grove, OR; Oregon City in Oregon City, OR; and Prestige Assisted Living at Hazel Dell in Vancouver, WA. It also bought four senior housing and skilled nursing facilities in Washington and Idaho: Colonial Vista in Wenatchee, WA; Hearthstone Cottage of Ellensburg in Ellensburg, WA; Hearthstone Cottage of East Wenatchee in East Wenatchee, WA; and Karcher Estates in Nampa, ID.

Prestige Care owns and operates independent living, assisted living, memory care and skilled nursing facilities. It specializes in updating facilities in rural, medium-sized markets.

The loan included funds for for capital improvements to improve the physical condition and marketability of the facilities, and for an earn-out, which will allow equity recapture, Capital One said.

“We devised a structure for the real estate loan that enabled Prestige to leverage the equity it had in three of its existing facilities to finance the acquisitions,” said Dague Retzlaff, senior vice president, Capital One Healthcare. “The company was able to purchase the new facilities with significantly less cash equity than would have been required if it financed the acquisition as a stand-alone transaction.”