MedProperties Holdings, LLC, a real estate private equity fund sponsor that focuses on healthcare real estate, wanted to form a new real estate investment fund to hold investments in two specialty hospitals in Texas and Arizona (located on tribal land, adding to the complexity). Acquisition and financing of the hospitals totaled $47 million. The financing included a private offering of limited liability company interests and mortgage and mezzanine debt financing. Because Arnall Golden Gregory is experienced in all aspects of medical properties transactions, it was tapped to address the numerous corporate and healthcare legal issues.
AGG structured a special purpose fund to hold the equity investments in the two properties, and assisted with the offering to raise the capital. AGG also handled negotiations with lenders’ counsel to overcome several unique legal issues, provided legal opinions to satisfy the lenders, and coordinated the closing with the lenders.
The client was able to simultaneously close on the private offering, the refinance of the mortgages on the properties, the mezzanine debt financing, and the purchase and sale of the entities holding the properties.