CHEVY CHASE, MD-CapitalSource has completed the sale of 63 long-term care facilities to Omega Healthcare Investors--a multi-step deal that was first announced last November.

With the closing, CapitalSource received net proceeds from Omega of $293 million, $261 million of which was used to repay debt on the facilities sold. After adjustments for prepaid rental income, CapitalSource received $30 million in cash at closing, in addition to the $25 million in Omega common stock received in December 2009.

There is one remaining transaction under the securities purchase agreement for the sale of 40 long-term care facilities that still requires approval from the Department of Housing and Urban Development due to the assumption by Omega of the HUD mortgages CapitalSource holds on those facilities. The purchase price for that particular transaction is $270 million, which will include the assumption of $204 million of HUD and other debt by Omega and net cash proceeds to CapitalSource of $66 million.

CapitalSource sold its portfolio when few deals were trading in the healthcare sector. Since then--especially with the passage of the health insurance bill--there has been some movement on the part of buyers, sellers and lenders. However, CapitalSource is not exiting the healthcare real estate market, even as it sells off its portfolio. Instead, the company will be focusing on lending to this space, which it views as relatively healthy, according to an earlier interview with CapitalSource's Steve Gilleland.