CHARLESTON, S.C. – June 6, 2019 – Berkadia today announced the closing of a $21.7 million bridge to HUD loan on May 23 for the acquisition of two Western U.S. skilled nursing facilities, one of which is located in Idaho. Managing Director Jay Healy of Berkadia’s Seniors Housing & Healthcare group arranged the financing, which represents a loan amount of $285,526 per bed.
The Berkadia bridge loan is interest-only and carries a floating rate with an initial term of 18 months. The HUD loans will be submitted upon the three-year anniversaries of the certificates of occupancy.
“Our sponsor created a tremendous amount of value through the operations of these facilities, and I’m pleased that we were able to help them capitalize on the opportunity to acquire the real estate,” said Healy. “Utilizing Berkadia’s bridge to HUD program positioned the sponsor for a quick close while maximizing debt and efficiencies for the subsequent HUD takeout.”
The two facilities opened between 2016 and 2017 and house a nearly 100 percent Medicare-eligible resident population. The buildings maintain an average occupancy of 97 percent, based on 76 licensed beds that are all contained within private suites. The borrower, a repeat customer of Berkadia, has operated these projects since they were built and will benefit from the low debt service as compared to the prior lease rate.