A large skilled nursing facility in Long Island, New York refinanced its existing bridge debt with a $71.3 million HUD loan provided by Greystone. Fred Levine originated the transaction, which came with a 30-year term, 30-year amortization, and a low, fixed interest rate.
Originally built in 1974, the facility features 320 beds in Amityville. There is also an onsite 55-slot adult day care program. It was acquired by Northwell Health Inc. in 2012 as part of the company’s acquisition of Long Island Home (LIH), a not-for-profit entity that operated the SNF and an acute psychiatric hospital, South Oaks Hospital. However, Northwell’s strategic focus was on behavioral health, so it eventually divested the facility in November 2017. Back then, the facility was projected to bring in just over $700,000 in net income on approximately $42.88 million of year-one revenues. The buyer was the Fuchs family, which paid $58 million, or $181,250 per bed, for the facility, according the public records. Bridge financing was used to finance the deal but will be taken out by this HUD loan.
Since the acquisition, the facility has undergone $8.5 million in upgrades, including the addition of private suites with private showers, a new commercial kitchen, a large rehabilitation and wellness center, and comprehensive renovations to the entrance lobby, nurse stations and geriatric units. The HUD financing will also help ownership continue with more renovations.
