The Real Deal New York

Cassena Care lands $61M loan for Crown Heights nursing facility

The firm bought 520 Prospect Place for $64 million last May
By Christian Bautista | October 22, 2018 04:45PM

520 Prospect Place (Credit: Google Maps)

Nursing home operator Cassena Care secured a $61.4 million loan for a senior housing facility that it acquired last year.

Bank of America provided the debt, which replaces a loan from last July, also from the bank. The new mortgage consists of the existing $24.4 million debt on the property and $37.3 million in new financing, according to records filed with the city.

The property, at 520 Prospect Place in Crown Heights, is a 320-bed home that spans 118,200 square feet. Cassena bought the building last May in a deal valued at $64 million.

The previous owner of the property, nonprofit organization CenterLight Healthcare, had been selling pieces of its real estate portfolio as it faced charges of Medicaid fraud. It was accused of collecting monthly Medicaid payments from 186 patients who didn’t receive the services they were charged for. The organization paid a $10 court settlement in March.

The sale of the Prospect Place property was part of a Department of Health-proposed plan to recapitalize CenterLight. The organization previously sold its Queens facility, also to Cassena Care, in 2016.