GLOBAL HEALTHCARE REIT, INC. (OTCMKTS:GBCS) Files An 8-K Completion of Acquisition or Disposition of Assets
ITEM 2.01 ACQUISITION OF ASSETS
ITEM 2.03 CREATION OF DIRECT FINANCIAL
OBLIGATION
ITEM 8.01 OTHER EVENTS: GENERAL UPDATE
Abbeville Acquisition
On April 4, 2017, Global Healthcare REIT, Inc (the Company),
through a newly formed wholly-owned subsidiary Global Abbeville
Property, LLC (GAP) formed for this purpose, successfully bid at
a publicly advertised foreclosure auction sale to purchase a 101
bed skilled nursing facility located in Abbeville, Georgia. The
senior lender on the facility, was the party undertaking the
foreclosure in light of the default on the senior loan by the
prior owner.
The purchase price for the facility was $2.1 million which was
entirely financed by Colony Bank through a newly approved
closed-end revolving credit facility in the maximum amount of
$2.6 million. The additional $500,000 under the credit line will
be used for renovations on a dollar-for-dollar matching basis.
The lender will take a senior mortgage on the property, and the
credit facility will be cross-collateralized with the Companys
skilled nursing facility in Eastman, Georgia which is also
financed by Colony Bank.
The facility was closed in March 2016 due to uncured deficiencies
by the previous operator. On March 17, 2017, in anticipation of
our purchase of the facility, the State of Georgia inspected and
approved a conditional Certificate of Need (CON) to allow us to
complete renovations and fully reopen the property.
The property will require substantial renovations prior to be
fully reopening but will bring the property to best of care in
finish and amenities at the facility. The renovations are
currently underway and will take no longer than six months.
Refinance Activity
Providence
The Company is currently in the application process of
refinancing of its Sparta property with the Department of Housing
and Urban Development (HUD). The application has been submitted
and we hope to have the refinance completed in the second half of
2017. If and when completed, the HUD loan would significantly
reduce our monthly debt service for the facility.
Archway (formerly Goodwill)
The Company renewed the senior loan with First Commercial Bank
for an additional three years. This facilitys census continues to
grow as forecasted at the 100 bed facility.
Southern Hills
The renovations at Southern Hills SNF have been completed and it
has filled rapidly with surgery rehab patients. Work continues on
the ALF which we expect to be completed in 45 days. We are also
working with contractors and lenders to begin renovations at the
ILF.
Retirement of Debt
The Company has been actively pursing the repurchase of some of
its outstanding debt. At Southern Hills, we have been
repurchasing the Tulsa Industrial Revenue Bonds for which there
is a public trading market. We will use a portion of the proceeds
from the HUD loan on Providence to retire in full the outstanding
mezzanine debt. In addition, we are in active discussions with
the holders of the mezzanine debt at Archway to defer and then
retire the debt.
Other Acquisitions
We continue to be active in identifying additional properties for
acquisition, leveraging our improved banking relationships and
position in the industry.
About GLOBAL HEALTHCARE REIT, INC. (OTCMKTS:GBCS)
Global Healthcare REIT, Inc. operates as a real estate investment trust (REIT) for the purpose of investing in real estate and other assets related to the healthcare industry. The Company acquires, develops, leases, manages and disposes of healthcare real estate, and provides financing to healthcare providers. The Company owns approximately nine healthcare properties, which are leased to third-party operators under triple-net operating terms. The Company’s approximately nine assisted-living facilities include Middle GA Nursing Home; Warrenton Nursing Home (Warrenton); Southern Hills Retirement Center; Goodwill Nursing Home; Edwards Redeemer Health & Rehab; Providence of Sparta Nursing Home; Providence of Greene Point Healthcare Center; Meadowview Healthcare Center, and Golden Years Manor Nursing Home. The Company’s Southern Hills Retirement Center consists of an Assisted Living facility (ALF), an Independent Living facility (ILF) and a Skilled Nursing facility (SNF). GLOBAL HEALTHCARE REIT, INC. (OTCMKTS:GBCS) Recent Trading Information
GLOBAL HEALTHCARE REIT, INC. (OTCMKTS:GBCS) closed its last trading session 00.000 at 0.420 with 2,015 shares trading hands.