MidCap Financial, a leading specialty finance firm focused on the middle market in North America and Europe, announced  it recently closed a transaction with Monarch Senior Living to acquire an existing medical office building in La Jolla, CA and convert it into a Class A memory care facility. MidCap provided a $9.96MM first mortgage floating rate loan with a term of up to five years.

The loan not only facilitated the acquisition, but will also provide renovation funds for the borrower to repurpose the building into a 26-unit /44-bed memory care facility. The community will be owned by a newly formed joint venture between HG Capital and Monarch.

HG Capital is a private real estate equity sponsor based in Menlo Park, CA. Monarch is a seniors housing and memory care provider located in California. HG Capital and Monarch intend to invest together on a programmatic basis to establish a portfolio of seniors housing assets in premier locations over the next several years.

Monarch chose MidCap Financial based upon its ability to structure and deliver a transaction that provided both acquisition and construction proceeds, as well as certainty of timely execution necessary in an acquisition. Financing was arranged by Aaron Beck of Northmarq Capital.

MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries in North America and Europe.