Berkadia recently closed four separate financings for a total of 10 properties, with a range of purposes from refinances to acquisition financing to a construction loan. First, Ed Williams secured a $5.5 million Fannie Mae refinance for a 51-unit assisted living/memory care community in Georgia. Built in two phases, the latter of which completed in 2008, the community was historically occupied above 90%. Its Southeast-based owner obtained 10-year term, two years of interest only and was able to take advantage of the Streamlined Early Rate Lock option to refinance its existing HUD debt and capture trapped equity in the property. With those funds, they will be able to pursue other construction or acquisition opportunities.
Mr. Williams also refinanced a recently built 71-unit assisted living/memory care community in Tennessee with a $11.8 million Fannie Mae loan. The property quickly leased up and was fully occupied within seven months. With stabilization completed, the owner was able to retire the existing bank loan and recapture equity. The loan came with a 10-year term and two years of interest only.
Then, Chris Cain and Rafael Nobo worked together to secure $29.2 million in Fannie Mae financing to fund the acquisition of six senior living communities in four separate states, plus refinance a seventh property. Located in Tennessee, Arizona, Delaware and South Carolina, the portfolio was over 95% occupied across the 307 units. The repeat client of Berkadia’s received a variable rate loan with a 10-year term and five years of interest only.
Finally, Jay Healy arranged a $3.82 million supplemental HUD loan for a California-based borrower to develop a 12-unit memory care expansion of its community in Sumner, Washington. Already consisting of two 12-unit memory care cottages, the campus had refinanced through HUD in 2018, thanks to Berkadia. The new loan will run coterminous with the existing HUD debt and will mature in 32 years. It is funding 90% of the project’s costs, putting the per-unit cost at more than $350,000 per unit. Construction is going forward, having been deemed essential by the state of Washington.
