Berkadia Secures $40.825M in Financing for Three Senior Housing Communities
Idaho, Nevada, Oregon – September 15, 2023 – Berkadia Seniors Housing & Healthcare announced today the financing of a Skilled Nursing Facility in Idaho, Transitional Care Facility in Nevada, and an Independent Living, Assisted Living & Memory Care community in Oregon.
Managing Director Jay Healy closed an $8.3M 232/223f HUD loan to refinance a Berkadia and Live Oak Bank bridge loan secured by a 2017-built, 60-bed, 5-star Skilled Nursing Facility located in Idaho. The 80 percent LTV, 35-year HUD loan retired the bridge debt that had been utilized by the Idaho-based owner/operator to acquire the real estate in February 2023. Occupancy exceeded 90 percent at the time of closing with a Medicare census mix north of 20 percent.
Berkadia also closed a $16.7M 232/223f HUD loan secured by a 38-bed, 5-star transitional care facility located in Nevada. The facility was constructed in 2019 and was 95 percent occupied at the time of closing with a Medicare census mix of 85 percent. The Utah-based operator used the HUD loan proceeds to pay down the Berkadia and Live Oak bank bridge loan that facilitated the purchase of the real estate from the developer in November 2022.
Managing Director Ed Williams, Senior Director Rob Affleck, and Associate Director Andrew Lanzaro of Berkadia Seniors Housing & Healthcare partnered with Live Oak Bank utilizing Berkadia and Live Oak Bank’s A/B structure to originate a $15.825M loan for a 119-unit Independent Living, Assisted Living, and Memory Care community on the Oregon coast. The 64 percent LTV bridge loan carried a term of 18 months; loan proceeds were used to retire CMBS debt, buy out TIC investors, and cover transaction costs. In conjunction with the bridge closing, the real estate ownership was converted to a HUD compliant structure for immediate submission as a HUD 232/223f refinance loan, which Berkadia expects to close in early 2024.
Berkadia Seniors Housing & Healthcare 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.