PHOENIX, AZ – April 20, 2020 – Berkadia’s Seniors Housing & Healthcare group has recently completed $50.33 million total in financing for four separate deals encompassing ten properties.
“Despite the current impact of COVID-19, we have still been able to help our clients identify and capitalize on financing opportunities to enhance their portfolios,” said Senior Director Ed Williams. “These four deals represent a diverse range of solutions that we’re able to achieve together with our clients, whether single properties or portfolios and acquisition or refinancing needs across different property types.”
Senior Director Ed Williams secured a $5.5 million refinance of a 51-unit assisted living and memory care community in Georgia for a repeat Southeast-based client. The property was constructed in two phases, with the last phase completed in 2008. The community’s historical occupancy has average of above 90 percent. The Fannie Mae loan has a 10-year term and two years of interest-only. The borrower took advantage of the Streamlined Early Rate Lock option and loan proceeds were used to refinance the existing HUD debt to capture trapped equity, which will be redeployed to fund their construction and acquisition pipeline.
Williams also secured a $11.8 million refinance of a 71-unit assisted living and memory care community in Tennessee. The recently constructed property leased up and achieved 100 percent occupancy in seven months and was 98.6 percent occupied at closing. The Fannie Mae loan has a 10-year term and two years of interest-only. Proceeds were used to retire the existing bank debt and return equity to the sponsor to fund their construction and acquisition pipeline.
Senior Directors Chris Cain and Rafael Nobo secured $29.2 million in financing for a 7-property portfolio with 307 units across Tennessee, Arizona, Delaware and South Carolina. The portfolio was operating above 95 percent occupancy at closing. The communities were financed on behalf of a repeat client through a Fannie Mae variable rate loan with a 10-year term and five years of interest only. Proceeds were used to refinance one community and fund the acquisition of six other communities.
Managing Director Jay Healy secured $3.82 million in HUD financing in the form of a 241(a) supplemental loan for a repeat California-based sponsor. The loan proceeds will cover 90 percent of project costs associated with the construction of an additional 12-unit memory care cottage in Sumner, Washington. The memory care campus currently consists of two 12-unit cottages collateralized by a HUD 232/223(f) loan that Berkadia closed in 2018. The supplemental loan will run coterminous with the original HUD loan set to mature in 32 years. Deemed essential by the state of Washington, construction will continue despite COVID-19 related restrictions put in place by the Governor.
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.