Berkadia Seniors Housing & Healthcare Arranges Over $48 Million in Financing for Senior Housing Communities in Washington and Oregon
Richmond, VA – August 11, 2022 – Berkadia Seniors Housing & Healthcare announced today the $48 million in combined financing for three healthcare communities in Washington and Oregon. Managing Director Steve Muth of Berkadia Seniors Housing & Healthcare secured the financing.
The first transaction was an assisted living community was a $27 million, sub-60 percent LTV loan, has a 10-year interest-only term and was secured through Freddie Mac on behalf of the borrower. Built in 2015 in Washington, the seniors housing community has 105 beds and was 92 percent occupied at the time of the refinancing.
“The above assisted living community performed exceptionally well during the pandemic, a testament to the ownership, management and on-site teams,” said Muth. “We encountered extreme rate volatility at the time of the application, and fortunately, we were able to take advantage of Freddie Mac’s index lock program to have rate certainty during the underwriting.”
The second transaction was a $16.21 million acquisition bridge loan for an assisted living and memory care community in Washington. Berkadia provided acquisition financing plus funding for CapEx and closing costs, through Berkadia’s Proprietary Lending program. The transaction closed 45 days from application.
The third transaction was a $4.77 million loan for a stand-alone memory care facility in Oregon. Berkadia’s Proprietary Lending program provided the short-term, variable rate financing. The 55-bed memory care facility was 96 percent occupied at the time of financing and is expected to be refinanced by HUD within the next 12-18 months.
“Being able to provide access to Berkadia’s Propriety Lending platform for short-term bridge loans is critical right now as the seniors housing industry continues to rebound from the pandemic,” said Muth. “The non-recourse bridge loans will give our customers the flexibility and support they need to position the properties for long-term permanent financing success.”
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.