Phoenix, AZ – March 3, 2021 – Berkadia’s Seniors Housing & Healthcare Group announced today the financing of six memory care facilities located in Central Florida. Managing Director Ed Williams secured the financing on behalf of the California based sponsor. The deal closed January 29.
The transaction involves the refinance of 36 Memory Care units contained in six six-unit residential homes situated in two counties in Central Florida. Berkadia processed the transaction as a scattered site loan under HUD’s 232/223(f) program.
“Underwriting these homes as one 232/223(f) scattered site loan enabled the sponsor to refinance this portfolio in the most efficient, cost effective manner possible, while benefiting from HUD’s very low long-term rates,” said Williams.
The $5.16 million, 34-year term loan represents a 60 percent loan-to-value and debt of $143,300 per bed. HUD mortgage proceeds were used to cover transaction costs and pay off a short-term bridge loan that retired several small individual property loans while returning equity to the sponsor for future acquisitions. The property was 98.6 percent occupied at underwriting and has consistently remained near 100 percent occupancy with a waiting list.
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. Last year, the team expanded its capabilities by adding an investment sales presence, rounding out its full suite of services.