Berkadia’s Ed Williams secured supplemental financing through HUD for a skilled nursing facility in Florida. Owned by an Indiana-based sponsor, the 165-bed facility was built in 2010 (relatively new for SNFs) with a mix of skilled nursing and assisted living beds. Occupancy was strong at 90%, and its owner wanted to build a new skilled nursing wing with 20 private units. So, they increased licensed bed capacity by 12 and plan on converting some semi-private units to private.
To cover 90% of the project cost, Berkadia arranged a $5.08 million HUD supplemental loan that will run coterminous with the original HUD loan with a term of 30 years. The addition is expected to open this summer. HUD issued its firm commitment on January 29, 2020, and it was executed by the borrower on February 7, with the final closing occurring on May 6.
