Berkadia announced an impressive array of financings it closed in the past three months, ranging from HUD mortgages, to Fannie Mae/Freddie Mac deals and a couple of bridge loans, all totaling nearly $160 million in volume. The largest deal was a $107.6 million Fannie Mae master credit facility closed for a portfolio of eight senior living communities in South Carolina, Mississippi and Louisiana. Ed Williams and Rafael Nobo (serenaded with Happy Birthday last July on a flight from Chattanooga) secured the 10-year, fixed rate financing, with an interest-only period, on behalf of the portfolio’s Louisiana-based developer, owner and operator to refinance the properties, consolidate debt into one loan and buy out minority investors. Totaling 593 units of independent living, assisted living and memory care, the properties were on average 93% occupied.
Mr. Williams closed the other Fannie Mae transaction, a $7.01 million loan, also with a 10-year term, fixed rate and interest-only component, for a Tennessee-based owner/operator to refinance its assisted living/memory care community in Georgia. The 99%-occupied community will also receive a renovation with the funds, and the borrower was also able to take out some equity.
Mr. Nobo and Chris Cain secured the Freddie Mac loan for an independent living community in the San Francisco, California area. The $21 million loan has a 10-year term, fixed rate and a full-term of interest only. The borrower, based in the Golden State, was able to also cash out thanks to the refinance. Featuring 150 units, the community also provides Section 8 housing, which helped keep occupancy above 95%.
There were three HUD financings closed in the quarter, starting with a $13.9 million loan for a 95-unit assisted living/memory care community in Vacaville, California. Originally, Berkadia had provided the borrower with an interest-only bridge loan, with a floating rate for an initial 12-month term, to pay off existing debt and consolidate ownership away from a tenancy-in-common structure. Fast forward to today, and Ed Williams has secured a $13.9 million HUD loan to refinance it.
Mr. Williams also helped arrange a $3.16 million HUD loan for a 52-unit assisted living community in Indianapolis, Indiana on behalf of a repeat client who used the proceeds to pay off existing debt and reimburse the conversion of unused space into additional units. Jay Healy closed a HUD deal for a 60-bed skilled nursing/assisted living facility in Montana. Built in phases in 1954, 1959 and 1995, the facility had an existing bank loan secured on it that was taken out of with the refinance.
Finally, Mr. Healy was joined by Bianca Andujo to provide a $4.1 million loan utilizing Berkadia’s proprietary bridge lending platform. A Texas-based owner/operator used the loan to fund 94% of the purchase price and transaction costs for them to execute on a purchase option on a skilled nursing facility they already operated. The loan will be refinanced through HUD. We know Berkadia is capable of doing that.