CapitalSource Inc. has received a $119 million Housing and Urban Development-backed loan from the Capital Funding Group for mortgages on properties it plans to sell to Omega Healthcare Investors Inc.

The mortgages are for long-term care properties that will be among 37 such facilities CapitalSource will sell in April.

Chevy Chase-based CapitalSource announced the three-part sale of more than 100 properties to Hunt Valley, Md.-based Omega on Nov. 17.

The properties included in the sale represent most of the lender’s health care net lease portfolio. A net lease is a lease that includes property expenses in addition to normal rent.

Capital Source closed on the first part of the sale ­­— 40 nursing homes — last week.

That sale will account for $347 million of the total $495 million the deal is expected to yield. Omega will assume the $119 million loan.

CapitalSource will use the cash proceeds to pay down its debt. Thus far, it has reduced the outstanding committed debt under its syndicated loans from a Dec. 23 level of $525 million to $325 million. A syndicated loan is one offered by a group of lenders.

Source: Bizjournals.com