To say that the buyer of a portfolio of nine skilled nursing facilities located across the eastern United States was familiar with the properties may be an understatement. That is because the Tennessee-based operator has leased the buildings since 2004 and finally jumped on the opportunity to purchase the real estate. Located in Florida, Maryland, Michigan, Tennessee and Virginia, the portfolio totals 1,167 operating beds with an average occupancy of 85.8%.
To fund the acquisition, the buyer turned to Berkadia, which served as lead lender for a $52.2 million bridge-to-HUD loan for seven of the properties. The other two properties received a $24.6 million mini-perm loan through a bank partner. The bridge loan is interest only with a floating rate for an initial term of 18 months. The five-year mini-perm loan has a fixed rate for the first three years and also includes an interest-only period of 18 months. In total, the debt amounts to about $66,000 per bed, and the debt service falls well below the prior lease payment. Jay Healy and Ed Williams led the transaction for Berkadia, closing the loan within 70 days of application.