NEW YORK, N.Y. – September 19, 2018 – Berkadia’s Seniors Housing & Healthcare Group announced the closing of $76.8 million in acquisition financing for nine skilled nursing facilities located in Florida, Maryland, Michigan, Tennessee and Virginia. The portfolio contains a total of 1,167 operating beds with an average occupancy rate of 85.8 percent. Managing Director Jay Healy and Senior Director Ed Williams lead the transaction team that closed the loan within 70 days of application. The buyer, an affiliate of a Tennessee-based owner and operator of skilled nursing and assisted living facilities, has leased the buildings since 2004.
Berkadia served as the lead lender for the $52.2 million bridge to HUD loan for seven of the properties and placed a $24.6 million mini-perm loan through a bank partner for the remaining two properties. The Berkadia bridge loan is interest only and carries a floating rate with an initial term of 18 months. The five-year, mini-perm loan, structured for greater flexibility, has a fixed rate for the first 36 months and includes an interest-only period of 18 months. The combined debt service on the total loan amount of approximately $66,000 per bed represents significant savings when compared to the prior lease payment.
“Our sponsor has 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.”
Berkadia’s Seniors Housing & Healthcare Group leads the industry in innovative and comprehensive solutions for even the most complex independent living, assisted living, memory care and skilled nursing projects across the country. In addition to deep market knowledge, the group offers a full set of advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services. In 2017, the team expanded its capabilities by adding an investment sales presence, rounding out its full suite of services.