PHOENIX, AZ – March 12, 2020 – Berkadia’s Seniors Housing & Healthcare group today announced $20.27 million of financing for two separate deals. The first was a series of loan closings totaling $15.25 million for a 7-property nursing home portfolio. The second was a $5.02 million loan for an assisted living facility in Louisiana.
“These two deals represented opportunities for our clients to create value in their portfolios, in one case through acquisition and the other through a refinance,” said Senior Director Ed Williams. “With these financing solutions, we were able to help our clients take advantage of their respective opportunities and position themselves for their next phase of growth.”
Senior Directors Ed Williams and Bianca Andujo closed the $15.25 million, 24-month bridge loan for the acquisition of seven nursing homes, comprised of 426 operating beds, located throughout the Midwest. The 87 percent loan-to-cost financing included $2.52 million for capital improvements and resulted in loan proceeds of $35,800 per bed. Williams and Andujo tapped Berkadia’s own Proprietary Bridge Lending program to fund the interest-only, non-recourse bridge loan on behalf of the sponsor, a first-time client of Berkadia. Berkadia will ultimately refinance the floating rate bridge debt through HUD.
Williams also closed a $5.02 million, 12-month bridge to HUD loan to refinance an assisted living property located in Louisiana. The southeast-based sponsor, a repeat client of Berkadia, developed the 36-unit property in 2001 and has owned and operated it since. The property is currently fully occupied and has historically maintained an occupancy percentage in the high 90s. The loan proceeds were used to return equity to the sponsor before re-submitting the property to HUD.
Berkadia’s Seniors Housing & Healthcare group leads the industry in innovative and comprehensive solutions for even the most complex independent living, assisted living, memory care and skilled nursing projects across the country. In addition to deep market knowledge, the group offers a full set of advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services. Last year, the team expanded its capabilities by adding an investment sales presence, rounding out its full suite of services.