AVANA Capital Steps in and Completes Challenging Deal for Non-Bank Lender and Business Owner in $8.3M California Assisted Living Property Purchase

  • August 31, 2018

AVANA Capital continues to be the lender that brokers turn to when potential deals are stuck in the mud.

 

AVANA Capital recently provided a textbook example of how to step in and get a deal done for brokers and business owners alike.

 

Facing steep challenges upon its entry into the process, the Phoenix-based lender helped an owner of assisted care facilities though a long quest to expand the company and purchase its fifth property in greater Los Angeles. With AVANA as a key partner, the company was able to purchase the assisted living center that had been for sale since 2013.

 

That all came about after the deal, prior to AVANA’s intervention, had already fallen apart twice in two years with two other potential buyers. The property at the time, with about 50 percent occupancy, was underperforming. What it needed was the right operator. AVANA, able to see its potential, was able to see it through and worked closely with the borrowers to help them prepare for the expansion and to make their business, now with five properties, more valuable.

 

Using its decades of collective experience, AVANA’s SBA team was able to get the loan approved quickly. AVANA knows and understands senior care facilities and was able to finalize the $8.3 million purchase for the owners within a 30-day timeframe.

 

The commercial broker in the deal, Myles Walters, senior vice president at the non-bank lender firm Spectrum Commercial Lending, said AVANA was able to quickly step in and provide backing for the loan that they arranged, enabling his firm to complete what had been a difficult deal.

 

Walters said, “As a non-bank lender, having leverage with buyers and sellers to say we have financing in place to get deal done is very helpful. This was our first deal with AVANA, and we will definitely use them again. Through each stage of the deal they kept us updated and were very responsive. Because of their experience in working with assisted living facilities, they were able to understand the finer details of the borrowers financials, and see strength where other lenders may not have. We worked closely with their team to ensure the borrower received the financing they needed, and at the end of the day, they performed, closed the deal, and funded.”

 

The facility is licensed for (and has a capacity of) 208 assisted living beds in 104 units, each with its own bathroom. The property also has common areas including a lobby, dining room, activity rooms, piano room, chapel and common restrooms. The property also includes 15 rooms and a dining area for designed for memory care patients. It has been used for assisted living patients thus far.

 

“This might be the perfect example of what we do well and why we do it,” said Sanat Patel, Managing Partner of AVANA Capital. “Our team is able to identify the challenges quickly and accurately and figure out how to get a deal across the finish line. As a result, businesses can grow and commercial brokers get long-awaited commissions. Using our vast experience in dealing with healthcare and assisted living facilities, AVANA worked closely with the borrowers and Spectrum to ensure that this purchase was completed, and that a company now gets the opportunity to expand its operations and its presence.”

 

More and more, business owners and commercial brokers who are in need of getting a deal done are reaching out to AVANA Capital. For example, for restaurant franchises, AVANA specializes in loans and helps clients and prospective borrowers looking to buy or refinance their commercial real estate space. Another example is for hotel franchises, where AVANA Capital leverages its vast expertise and experience in this complex process to guide and assist its clients throughout the lending process.