Contemporary Healthcare Capital (CHC) recently announced the grand opening of its seventh fund, Contemporary Healthcare Senior Lien Fund I, LP (CHSLF), raising a total of $105 million.
CHSLF is a licensed Small Business Investment Company and provides senior mortgage financing for construction, turnaround financing, acquisitions, substantial renovations, and refinancing for skilled nursing, assisted living, dementia care and retirement campuses across the nation.
CHC says the fund, which will provide leverage up to 90% loan to cost/85% loan to value, will also provide traditional revolving lines of credit for working capital.
“We believe that this fund is incredibly important to the industry today, particularly given the turbulent capital and reimbursement climate that we are working in,” said Doug Korey, managing director of CHC, in statement. “In particular, with a severe shortage of construction, renovation and turnaround capital available to most operators of long term care and senior housing facilities today, coupled with a need to retool our aging skilled nursing stock in this country, I can think of no better time than now to open such a fund.”
Because CHC specializes solely in healthcare, it’s able to give immediate attention to loan or investment requests, which can be underwritten and closed on in as little as 30 days, says a spokesperson for the company. CHC finances construction and turnaround facilities, as well as traditional acquisition and refinancing structures.
The company offers additional leverage through its mezzanine and equity products, and allows operators to prepay all products, giving them the ability to own and control their facilities and optimize their upside.
Written by Alyssa Gerace