Housing and Healthcare Finance (HHC Finance) was busy in February, closing three HUD transactions for nearly $43.7 million in business. First, in Nassau County, New York, a 218-bed/95-unit assisted living community obtained a $23 million loan with an interest rate in the low 3s. Built in 1960, the building had operated as a long-term psychiatric care facility until it was purchased by the current owner in 2001. Over the next three years, the owner, which has owned and/or operated several senior care facilities in the New York City area, invested $12 million in renovations and converted the property to a low-income assisted living community. Now with the current HUD refinance, the borrower obtained funds to repair and refresh the buildings’ common areas. Then heading up I-95, HHC Finance closed a $14.7 million refinance of a 217-bed skilled nursing facility in Greenwich, Connecticut. The experienced borrower, which recently acquired the 30-year old property, obtained a 35-year term and a fixed interest rate below 3.5%. Finally, the firm closed a $5.8 million HUD refinance for an 84-bed/39-unit skilled nursing facility in Michigan, also with a rate in the low 3s.
In addition to its HUD activity, HHC Finance has also been growing its bridge loan and ABL Advisory program (Asset-Based Lending), which is run by Isaac Haas and Neil Gamss. Since its launch in late-2015, the program has sourced approximately $400 million in bridge-to-HUD financing, in addition to securing over $60 million in asset-based revolving lines of credit for its clients. A couple of Messrs. Hass and Gamss’ more notable transactions include a $46 million acquisition loan for a 1,026-bed portfolio of skilled nursing and assisted living facilities in Arkansas, a $34 million loan funding the purchase of a 751-bed skilled nursing portfolio in Ohio, and a $50 million acquisition loan on a 607-bed Florida skilled nursing portfolio. We expect to hear more from this growing business.
