Berkadia announced the financing of four seniors housing communities totaling $29.9 million in Mississippi, Florida and Indiana, with all the deals closing since November. Berkadia also announced the sale of two seniors housing communities.
In November, Steve Muth and Andrew Lanzaro leveraged HUD’s 232/223(f) program to close two loans totaling $8.9 million for a first time HUD borrower. The loan proceeds retired maturing bank debt on two Mississippi communities: a 40-unit assisted living community and a 47-unit assisted living and memory care community. At underwriting, one community was fully occupied, while the other had an occupancy rate of 86%. Both properties are located in opportunity zones which allowed the transactions to benefit from expedited processing by HUD. The loans feature a 35-year term and an average LTV of 74%.
Also in November, Ed Williams secured $9.2 million in financing for a repeat borrower in Florida through HUD’s 232/223(f) program. The asset was a 174-bed skilled nursing and assisted living community in Miami, Florida. The sponsor, an experienced HUD borrower and long-time client of Berkadia, owns thousands of beds across four states. The loan proceeds were used to retire partnership debt, and the remaining balance of a $78.6 million bridge loan was funded by Berkadia and a bank partner. The bridge loan had been used to acquire a seven-property nursing home portfolio in Florida, with all but on property transitioning to a 232/223 (f) HUD refinance. At the time of closing, the property enjoyed a 91.6% occupancy rate over the trailing 12 months.
In December, Williams additionally closed an $11.8 million loan utilizing HUD’s 232/241(a) program for a skilled nursing and assisted living expansion in Indiana. This loan carries a 35-year term, slightly longer than the remaining term on the existing HUD mortgage. It also marks the third 241(a) loan Williams has closed with the sponsor since 2020. The loan proceeds will be used to convert eight skilled nursing units from semi-private to private and construct a 37-unit assisted living wing on the premises, expanding the continuum of care at the community for the foreseeable future. Occupancy at the facility was 88% at the time of HUD Firm Commitment.
Next, Dave Fasano, Ross Sanders, Cody Tremper and Mike Garbers of Berkadia were engaged by a private equity firm in the sale of a Class A independent living, personal care and memory care community in the Philadelphia MSA that was built in 2019. In another sale with the seller as a private equity firm, Brooks Minford facilitated the divestment of The Woodlake, a 137-unit assisted living and memory care community in Sacramento, California. The buyer was Colorado-based ONELIFE Senior Living.
