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Oxford Finance’s Healthcare Real Estate Closes Over $867 Million Of 2022 Capital Commitments

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Oxford Finance LLC (“Oxford”), a leading specialty finance firm that provides senior debt to life sciences and healthcare services companies worldwide, announced that its Healthcare Real Estate Group closed a record level of originations in 2022, with Oxford providing over $867 million of capital commitments.

The group closed a total of 14 transactions, with credit facilities ranging from $9 million to over $124 million.

Despite the uncertain economic environment and fluctuating competitive landscape, Oxford Finance remains committed to providing customized, relationship-driven solutions to the healthcare real estate market.

2022 Highlights

Ohio Acquisition: Oxford provided an $80.75 million term loan and an $8.5 million revolving line of credit to finance the acquisition of four healthcare campuses comprised of skilled nursing, assisted living, and independent living units for an experienced Midwestern operator.

Florida Acquisition: Oxford provided a $115.5 million term loan and $9.0 million revolving line of credit to finance the acquisition of seven skilled nursing facilities containing 906 beds in Florida for an experienced East Coast-based operator.

West Coast Revolving Line of Credit: Oxford supplied a $9.0 million revolving line of credit to finance working capital needs for seven skilled nursing facilities for an expanding California-based operator.

Maryland Acquisition: Oxford’s largest deal of the period included a $124.8 million term loan to finance the acquisition of four skilled nursing facilities consisting of 520 beds for a large operator.

Florida Acquisition: Oxford provided a $77.8 million term loan and a $9.0 million revolving line of credit to finance the acquisition of four skilled nursing facilities containing 540 beds in Florida for an experienced East Coast-based operator.

  • Massachusetts Acquisition: Oxford provided a $23.0 million term loan and a $5.0 million revolving line of credit to finance the acquisition of five skilled nursing facilities containing 450 beds for an experienced Massachusetts-based operator.

  • About Oxford Finance LLC

Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to over 500 companies, allowing borrowers to maximize their equity by leveraging their assets. Since 2002, Oxford has originated approximately $10 billion in loans. Oxford is headquartered in Alexandria, Virginia, with additional offices in California (San Diego, Palo Alto, and Los Angeles), and the greater Boston and New York City metropolitan areas. For more information, visit https://oxfordfinance.com.

 

Source: HREI

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Another MOB Sales Record: $25 Billion In 2022

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Perhaps James A. Schmid III, chief investment officer and managing partner with Media, Pa.-based Anchor Health Properties, summed up how many successful healthcare real estate (HRE) investment and development firms are going about their business at a time when costs and interest rates are on the rise.

“Last year, 2022 was certainly a pivot point, I think, both for our sector as well as commercial real estate and the economy as a whole,” Mr. Schmid said. “It was, in aggregate, a very successful year for us as we closed just over $600 million of new acquisitions, monetized and or recapitalized several hundred million of developed and/or owned assets … and monetized a strategic position in our operating business with a client of Stepstone Real Estate, an international offshore client.

“That being said,” he added, “as the market has continued to move, with interest rates continuing to rise as the (U.S. Federal Reserve Bank) increases rates, we’ve continued to be more and more selective about decisions we make, particularly with new investments – trying to be thoughtful about what where we want to own and why, trying to focus on our areas of strength and scale across our platform.

“This is also true on the development front, where we continue to be extremely active. We really haven’t seen much of a slowdown in development; if anything, we’ve seen a continued acceleration in development in different parts of the country, particularly high growth markets where health systems and physician clients alike have a continued need for more and more specific space for clinical use.”

Mr. Schmid was a guest speaker during a fourth quarter (Q4) subscriber webcast hosted Jan. 24 by Arnold, Md.-based Revista, a data firm that provides a wide variety of statistics on the HRE sector to its subscribers.

The $2.2 billion of MOB sales in Q4 will likely, when all of the transactions are recorded, rise about 30 percent, to about $3 billion, according to Revista. (Slide courtesy of Revista)

The webcast led by Revista principals Mike Hargrave and Hilda Martin focused heavily on medical office building (MOB) market data during this time of inflation and rising debt costs, with much of that data reaffirming what a strong industry the HRE sector continues to be.

 

Source: HREI