A large skilled nursing facility in the Bronx just received one of the largest HUD loans ever on a single building in the agency’s history, totaling $104 million. Berkadia Commercial Mortgage arranged the refinance, with Mark Zafrin and Mark Frimmel of Michelman & Robinson, LLP representing the borrower, 3155 Grace Avenue Trust (a Delaware Statutory Trust) in the transaction. The transaction was also HUD’s first with a DST borrower under the Section 232 program.
Totaling 524 beds, this skilled nursing facility, which occupies an entire city block in the Bronx, was completely renovated by its not-for-profit owner in 2006 and then purchased by a private investor group in 2013. In that deal, the owners assumed a $71.89 million HUD mortgage, also being serviced by Berkadia. And they have clearly operated it well, as occupancy stands at a strong 97%.
It’s true that there have been few $100+ million HUD loans arranged for single assets, but this transaction still falls behind the largest of all time totaling $127 million which KeyBank Real Estate Capital secured for a 499-bed New York City skilled nursing facility in May 2018.
