Busy Berkadia
Berkadia has been busy so far this month, closing four transactions that ranged from Fannie Mae financing to HUD debt to a bridge loan. Starting with the largest, the team of Heidi Brunet and Jay Healy utilized Berkadia’s proprietary bridge loan program to finance the $28 million acquisition of three skilled nursing facilities, totaling 222 Medicare-certified beds, in Colorado, Kansas and Nevada. The borrower used the proceeds of the 12-month loan to fund 100% of the purchase price, plus transaction costs, and plans to refinance through HUD. Brunet and Healy also closed two HUD loans as well, including a $2.5 million, 35-year loan for a 120-bed skilled nursing facility in Sarasota,... Read More »Greystone’s Freddie Mac First
In a first for the seniors housing industry, Greystone closed Freddie Mac’s first-ever lease-up loan for a client in Northern California. More common in the multifamily market, the lease-up program is for experienced clients to lock-in low interest rates earlier in the process for refinancing newly-built properties. Now, for a just-built 66-unit assisted living/memory care community in San Jose, the team of Scott Kavel, Neal Raburn and Cary Tremper of Greystone provided a $27.5 million Freddie Mac loan, with an 11-year term, 30-year amortization and a fixed interest rate. The loan takes out the original construction loan just three months after the community opened. We suspect lease-up was... Read More »KeyBank Arranges Over $700 Million for Blackstone’s Big Brookdale Acquisition
Blackstone and Brookdale Senior Living are in the news again. Working with KeyBank Real Estate Capital’s healthcare business, the joint venture received about $703 million in financing to fund Blackstone’s acquisition of 64 Brookdale-operated communities from HCP, Inc. A Fannie Mae credit facility makes up most the financing, which was arranged by Charlie Shoop of KeyBank and provides long-term, non-recourse, flexible financing. Meanwhile, KeyBank provided the balance from its balance sheet, in a transaction led by Peter Trazzera. The total financing represents about 62% of the $1.125 billion purchase price, which came out to approximately $188,500 per unit. That was for 100% of the... Read More »
Strawberry Fields REIT Refinances Scottsburg Skilled Nursing Facility
Six years after initially leasing a skilled nursing facility in Scottsburg, Indiana, and three years after purchasing it, Strawberry Fields REIT LLC is refinancing the facility with a $4.4 million 35-year HUD loan, featuring a 3.65% fixed interest rate. The REIT utilized a new FHA lending partner to execute the transaction, which took out an existing conventional bank acquisition loan. The 99-bed facility certainly has room to improve, with occupancy of 69% based on licensed beds and around 80% based on operational beds. But it has increased in value since Strawberry Fields’ 2014 purchase, when the facility sold for $3.415 million, or $34,495 per bed. Recently, it has been appraised for... Read More »
Another Bridge Loan Arranged By Harborview
Eli Kutner, Senior Originator at Harborview Capital Partners, recently arranged a $36.3 million bridge loan to finance the purchase of two skilled nursing facilities in Nashville, Tennessee. Including both a senior acquisition loan, capex loans and an A/R line of credit, the financing features 12 months of interest only and partial recourse at 85% loan-to-cost. Mr. Kutner also arranged a competitive LIBOR+235 interest rate for all the loans. Well done. Read More »Schedule a demo
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