Seniors housing and care M&A may be slowing towards the end of 2018, but the lenders are still closing plenty of transactions. One of them, Housing & Healthcare Finance (HHC Finance), closed two HUD loans totaling $31 million for a couple of East Coast skilled nursing facilities owned by experienced regional operators (and repeat HHC customers).
The smaller loan (for $6 million) was closed for a 108-bed SNF in southern New Jersey and refinanced existing conventional debt. Although it received several improvements in recent years, the facility was built in the mid-1960s and was occupied in the high-80s.
The other loan was closed for a large 238-bed skilled nursing facility in central Pennsylvania. Built in the 1970s (again, with several recent improvements), the facility was operating a little better, with occupancy in the low- to mid-90s. Its owner received a $25 million loan to take out conventional and partnership debt on the facility.