Berkadia Arranged Two Bridge Loans
Berkadia announced two financings for a total of eight senior care properties. The first transaction saw the firm close a $15.25 million bridge loan for the acquisition of seven skilled nursing facilities located throughout the Midwest. Comprised of 426 operating beds, the portfolio was acquired by a first-time client of Berkadia’s. They obtained a two-year, interest-only term, and the non-recourse loan came in at 87% loan-to-cost that included $2.52 million for capital improvements. Senior Directors Ed Williams and Bianca Andujo arranged the transaction and ultimately plan to finance the loan through HUD. The other transaction was a $5.0 million refinance of a 36-unit assisted living... Read More »
Berkadia Closes Three Financings for SNF Clients
Berkadia announced a series of loan closings last month totaling $57.2 million. There were four HUD financings, including three loans totaling $26.2 million closed for a portfolio of three skilled nursing facilities in Washington. Jay Healy arranged the financing for a Washington-based owner/operator, which used the proceeds to pay off short-term debt, fund improvements to the properties and reduce its debt service payments. Located in Brewster, Kennewick and Spokane, these facilities were on average 89.3% occupied with a strong quality mix. Mr. Healy was then joined by Bianca Anduko to secure a $16 million HUD loan for a 146-bed skilled nursing facility in western Maryland. The... Read More »
Inland Private Capital Corporation Makes First Seniors Housing Acquisition
As part of its larger disposition/restructuring strategy, Capital Senior Living Corporation announced in its third quarter earnings report that it sold two non-core independent living communities in Peoria, Illinois and Springfield, Missouri, generating some healthy proceeds in the process. The communities sold for a combined $64.75 million, or nearly $205,000 per unit, resulting in $14.8 million of net cash proceeds and $44.4 million of mortgage debt off its books. Tim Cobb and Sabel Kaminski of Berkadia represented CSL in the transaction. Both built in the late-1990s and totaling around 215 units, these communities were both over 90% occupied, but rent growth was sluggish. They were in... Read More »
HUD Lean Volume Hits an All-Time High
The HUD LEAN program had quite a fiscal year 2019, topping $3.7 billion in transaction volume across 288 transactions. The transaction number may be 1% down from the 292 closings in FY2018, but the dollar volume is up 3.6% to reach a record high for the program. HUD used to be the “lender of last resort,” but given the attractiveness of the debt (where else can you get a sub-3% rate for a 30+ year term?), it’s no wonder the program is growing like gangbusters. ORIX Real Estate Capital/Lancaster Pollard put their combined resources to work this year, closing an impressive $903.8 million in HUD closings, with 78 total transactions. That kind of dollar volume hasn’t been seen before, even... Read More »