X-Caliber Rural Capital Refis Tennessee Medical Property With $21M Loan
By Andrew Coen November 16, 2023 1:12 pm
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Coffee Medical Group has nabbed a $21.25 million refinance for a health care facility in Manchester, Tenn., that serves as the sole hospital for the rural area, Commercial Observer has learned.
X-Caliber Rural Capital (XRC), an affiliate of X-Caliber, provided the loan on the entity’s 49-bed Unity Medical Center, which was funded through the U.S. Department of Agriculture (USDA) OneRD Community Facilities program. The deal closed in about four months, according to Jordan Blanchard, XRC co-founder and executive manager of the USDA lending platform launched in October 2021.
“This deal closed pretty quickly relative to USDA loans,” Blanchard told CO.
XRC’s USDA loans fund the refinancing of existing debt, new equipment and working capital. Blanchard said the program is vital for facilities like Unity Medical Center given the lack of emergency hospital options in Manchester, which is roughly 65 miles from Nashville and 70 miles from Chattanooga.
“Rural communities can almost never support two hospitals, and in rural communities they are lucky to have access to one hospital,” Blanchard said. “The economics of running hospitals in rural America is really stressed at this point, so that’s why the USDA programs are so viable.”
Located at 481 Interstate Drive, the 41,000-square-foot Unity Medical Center converted to nonprofit hospital status in 2019. The hospital was formed by a 2015 merger of United Regional Medical Center and Medical Center of Manchester.
Officials at Coffee Medical Group did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
