WASHINGTON, D.C. – January 8, 2020 – Berkadia’s Seniors Housing & Healthcare group today announced $57.2 million of loan closings in December for skilled nursing facilities located in Alabama, Illinois, New Jersey, Maryland and Washington.
“Skilled nursing has been a very active segment for us,” said Managing Director Jay Healy. “HUD’s 232/223(f) program for refinances and acquisitions offers a very compelling, long-term debt solution for seniors housing and healthcare owners and operators. We’ve had a great deal of success helping clients leverage this program to meet their business objectives and expect this trend to continue in 2020.”
Berkadia refinanced a portfolio of three skilled nursing facilities in Washington state for $26.2 million refinance, or $120,212 per bed, utilizing HUD’s 232/223(f) program. Managing Director Jay Healy arranged the financing, on behalf of the Washington-based owner and operator, who used the loan proceeds to pay off short-term debt, fund improvements to the properties and reduce their debt service payments. The properties are located in Brewster, Kennewick and Spokane and have an average occupancy of 89.3 percent with a strong quality mix. The sponsor is a repeat customer of Berkadia.
The second transaction was a $15 million bridge loan for a portfolio of three skilled nursing facilities located in Alabama, Illinois and New Jersey. Managing Directors Jay Healy and Steve Mentesana closed the 12-month bridge to HUD loan using Berkadia’s own Proprietary Bridge Lending Program to fund the interest only, non-recourse loan. Proceeds were used to retire existing HUD debt, fund improvements and return equity to the Pennsylvania-based owner and operator. It is anticipated that Berkadia will refinance the floating rate bridge debt immediately through HUD.
The third transaction was a $16 million HUD 232/223(f) loan for a 146-bed skilled nursing facility located in western Maryland. Managing Director Jay Healy and Senior Director Bianca Andujo secured the financing on behalf of the Texas-based ownership group that first acquired the facility in 2016 as part of a larger skilled nursing facility portfolio acquisition in Maryland. The $110,000 per bed HUD loan represents 80 percent loan-to-value and carries a term of 31 years. The property was 93.8 percent occupied at the time of underwriting.