Forbright Bank closed a $44.2 million HUD loan for a skilled nursing, assisted living and memory care facility in California. The financing, provided under the HUD 232/223(f) program, will support a 318-bed facility in the San Jose area. The loan was closed in partnership with Forbright Bank’s Healthcare Lending team, which provided bridge financing for the acquisition of the facility in 2022.
The loan refinanced existing Forbright Bank bridge and partnership debt, reimbursed the borrower for recent capital expenditures, funded critical repairs and covered all transaction costs associated with the HUD loan. The 35-year fully amortizing term loan will provide the borrower with long-term stability.
When Forbright provided a bridge loan for the acquisition of the facility in 2022, there was also a line of credit provided for working capital, which will remain in place alongside the newly placed HUD loan.
This announcement comes on the heels of Forbright Bank announcing a $10.7 million 232/223 (f) loan for a 120 bed skilled nursing facility in Georgia last month. The loan refinanced existing Forbright Bank bridge debt, partnership debt and all transaction costs associated with the HUD loan.
