HUD saw its largest single-asset, skilled nursing facility loan ever, when Housing & Healthcare Finance (HHC Finance) closed an $80.7 million 232/223(f) loan to refinance the existing conventional bank debt at a 520-bed skilled nursing facility in Manhattan, New York. Built in 1927 with 16 floors, but converted to skilled nursing in 1985, the Upper West Side facility was purchased three years ago by a member of the CareRite Centers network of communities for $80 million, or $153,800 per bed, with a 13% cap rate. With a loan of such size, HHC Finance had to get approval from multiple levels at HUD including the Office of Risk Management and all the way up to The Deputy Secretary of HUD. With the help of HHC Finance, the experienced borrower received an interest rate in the mid-threes on its 30-year loan.
HHC Finance closed two other transactions, bringing its loan amount total for December close to $100 million. The lender arranged an $8.6 million HUD loan for a 236-bed skilled nursing facility in Tampa, Florida, and also an $8 million HUD loan for a 118-unit assisted living community in Rochester, New York. Originally a skilled nursing facility that failed and was shuttered, the facility is being converted to low- to middle-income assisted living by the new owner.
