CapitalSource Closes On HUD Mortgages

Commercial lender CapitalSource Inc. announced last week that it received approximately $119 million of cash proceeds from Department of Housing and Urban Development (HUD) mortgage financing on long-term-care properties that will be included among the 40 facilities expected to be sold to Omega Healthcare Investors Inc. The transaction is expected to occur on or around April 1, 2010.

CapitalSource says it used the proceeds from the HUD mortgages to add to parent company liquidity and reduce the committed capacity of the company's syndicated bank facility to $325 million.

‘We are very pleased that the HUD financing and Omega step-one transactions have closed before year-end," says James J. Pieczynski, president of the CapitalSource Healthcare Real Estate business. "With these closings and the previously announced sale of 37 skilled nursing homes, we have realized approximately $347 million (before expenses) of the approximately $495 million anticipated from the monetization of our net lease asset portfolio."

SOURCE: CapitalSource


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