Healthcare Realty Trust has acquired Lewis-Gale Building Corp., which owns 10 properties in the Roanoke, Va., area, in a stock swap valued at $43.5 million. Lewis-Gale, which represents the medical office properties of Lewis-Gale Clinic, is being merged into a subsidiary of Healthcare Realty, a Nashville, Tenn.-based real estate investment trust. In exchange for stock in Lewis-Gale Building Corp., Healthcare Realty issued 690,000 shares of common stock and assumed company liabilities. Following the Nov. 18 announcement, Healthcare Realty's common stock rose 13 cents per share in New York Stock Exchange trading, closing at $24 a share. Lewis-Gale Building Corp.'s two main clinics are contiguous to Columbia Lewis-Gale Medical Center in Salem, Va. The properties are guaranteed by Nashville-based PhyCor and leased to Lewis-Gale Clinic, a 130-physician multispecialty group that practices at the hospital.
Heartland Capital Corp., a Knoxville, Tenn.-based mortgage banker specializing in financing for nursing homes, intermediate-care and assisted-living facilities, recently provided project loans totaling $21.4 million. In one deal that closed in October, Heartland Capital provided a $3 million construction and equipment mortgage loan for Fairhaven Assisted Living Center, a 50-bed facility in Brunswick, Ga. The U.S. Department of Housing and Urban Development, through its Section 232 mortgage insurance program, provided credit enhancement for the fixed-rate 40-year loan. As a Federal Housing Administration-approved mortgagee, Heartland Capital provides financing for acquisition, refinancing, rehabilitation and construction of long-term residential healthcare facilities nationwide.