Greystone Lends $41M for California Skilled Nursing Portfolio

Kalesta Healthcare Group has landed $40.5 million of bridge financing for the acquisition and refinance of two skilled nursing facilities in California’s Bay Area.

Greystone originated the interest-only nonrecourse two-year loan with two six-month extension options for Kalesta’s newly acquired 219-bed California skilled nursing asset portfolio, the lender announced Thursday. The properties include Atherton Park Post Acute at 1275 Crane Street in Menlo Park and Los Banos Nursing & Rehab at 931 Idaho Avenue in Los Banos. 

The deal will fund acquisition costs and capital improvements while Greystone seeks to secure a permanent U.S. Department of Housing and Urban Development-backed loan loan later this year, according to the company. The transaction was led by Greystone managing directors Christopher Clare and David Young alongside Ben Rubin, Ryan Harkins, Parker Nielsen and Liam Gallagher. 

“Our bridge-to-HUD program is one of the many ways we help clients in the skilled nursing space get the most out of their portfolio while providing quality housing to their residents,” Young said in a statement. 

G Capital’s Grant Goodman arranged the financing servicing as capital advisor to Kalesta Healthcare Group. 

Goodman said in a statement that the brokerage firm “ran an extensive capital markets process” before selecting Greystone’s bid. 

Officials at Kalesta did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com