Berkadia refinanced a couple of senior care facilities, including a large HUD financing for a 320-bed skilled nursing facility in New York City. Owned by a Northeast-based operator, the facility serves downtown Brooklyn and maintained strong occupancy, even during the pandemic. Census also grew throughout 2023, surpassing 90% at the time of the closing with a 20% Medicare mix. To pay off existing commercial bank debt as well as transaction costs, Berkadia’s Ed Williams and Richard Price secured a $62.1 million million HUD loan on behalf of the client. The 80% loan-to-value financing included a term of 35 years.
Next, Jay Healy and Andrew Lanzaro arranged a $14.4 million bridge loan to retire the existing construction debt of a 72-unit memory care community in Colorado Springs, Colorado. Berkadia offered an 18-month, floating rate bridge-to-HUD loan to allow the sponsor enough time to continue improving NOI to a level that will support a HUD refinance of the team’s bridge debt, plus a related party note. Berkadia anticipates submitting the HUD application within 12 months.
The community was developed by the Washington-based sponsor in 2018, and despite strong lease-up velocity in 2019, struggled throughout much of 2020 and 2021 due to key staff turnover and multiple COVID-19 lockdowns. Occupancy hit a low point of 30% in December 2020 before new community-level leadership stepped in to stabilize the community, managing to increase occupancy to 72% by March 2023.
