Within the past 30 days, Jay Healy and Andrew Lanzaro of Berkadia Seniors Housing & Healthcare have closed four HUD 232/223(f) loans totaling $64.4 million in aggregate proceeds. The loans were obtained on behalf of three sponsors and are secured by three seniors housing communities and a skilled nursing facility spanning Hawaii, Texas and Washington. Each loan carries a fully amortizing 35-year term.
The first transaction was a $18 million refinance for a San Marcos, Texas-based owner/operator of assisted living and memory care communities. The proceeds were used to retire bank construction debt and convertible ownership debt utilized to develop the 94-unit AL/MC community in College Station, Texas. The community opened in 2020 and had an occupancy rate of just under 90% at the time of closing.
The second transaction was a $18.5 million loan secured by an 82-unit, 2004-vintage AL/MC community in Lihue, Hawaii. The borrower is a Bellevue, Washington-based owner/operator and repeat customer of Berkadia. HUD loan proceeds were used to refinance maturing agency debt and fund capital improvements. The community (which is the only one of its kind on the island of Kauai) was nearly 100% occupied at the time of closing.
Berkadia also closed a $15 million HUD loan for the same client to refinance a Berkadia and Live Oak Bank A/B bridge loan, as well as mezzanine debt. The HUD loan is collateralized by a 99-unit AL community in Newcastle, Washington, that was originally developed by the sponsor in 2008.
Lastly, Berkadia secured a $13 million refinance for a Fort Worth, Texas-based owner/operator of SNFs. The HUD loan paid off a Berkadia bridge loan that previously funded the purchase of the 1987-built, 120-bed facility in El Paso. The sponsor has operated the facility since 2018 and was able to leverage the equity they created through operations to secure 100% of cost on the acquisition financing.
