Two senior care properties obtained permanent HUD financing courtesy of Walker & Dunlop to replace their original acquisition debt. Joshua Rosen led the origination team on the transactions.
Cascade Capital Group acquired the 136-bed supportive living facility in Aurora, Illinois earlier this year, thanks in part to an $11.03 million nine-month bridge loan arranged by Mr. Rosen from W&D’s balance sheet, which covered 100% of the acquisition costs. Built in 1964, the community is located adjacent to a 156-bed skilled nursing facility. It is being refinanced by a $14.65 million HUD loan, so Cascade must have added some significant value to the property.
Then, last year Strawberry Fields REIT purchased a 106-bed skilled nursing facility in Manchester, Kentucky, as part of a three-facility portfolio in the state. Including a 100-bed facility in Bardstown and a 106-bed facility in Elkhorn City, the portfolio averaged 73% occupancy and operated just above breakeven on nearly $23.775 million of revenues. Landmark Group took over the operations. Oxford Finance provided the acquisition loan to finance the $21 million, $67,300 per bed, purchase. Mr. Rosen then refinanced the property with a $10.74 million HUD loan.