Bentley Casa de Ramana

The Opportunity

As part of his job as Principal and CEO of Landmark Health Solutions, Steve Raso acquires and revitalizes poorly managed long-term care facilities.

Bentley Case de Ramana is a 121-bed Skilled Nursing Facility that, on paper, has a market value of $5M. But because of poor management it was losing money and was ranked as a 1-star facility. The owners of the facility, a large out-of-state healthcare corporation, wanted to cut its losses and put the facility for sale at $2.6M.

Steve knew an opportunity when he saw one. All he needed was a $3M loan to buy and update the facility.

The Challenge

Other lenders were wary to finance the acquisition of an underperforming skilled nursing facility. The reasoning being, ‘If it’s losing money now, why should we finance it when we don’t know if it will be profitable in the future?’

However, this wasn’t Steve’s first rodeo. He has turned around three other underperforming long-term care facilities before Casa de Ramana. In the hands of an experienced local operator like Steve, Casa de Ramana had the potential to be a 5-star facility worth over its current market value of $5M.

Celtic has experience funding long-term care turn-around projects and knows how to mitigate the risk of these assets. So, given Steve’s success in turning around other long-term care facilities and the backing of two investors, Celtic was able to grant the loan.

The Solution

Since being extended the loan Steve has acquired the business and started renovations on Casa de Ramana. He is on track to be in the black within the next 18 months.

After building improvements and restructuring management, Bentley Casa de Ramana is projected to be a 5-star facility worth more than $5M.