Berkadia Seniors Housing & Healthcare Secures $86M in Loan Closings in Q1 of 2023
New York, NY – April 17, 2023 – Berkadia Seniors Housing & Healthcare, in partnership with Live Oak Bank, announced four bridge-to-HUD loan closings totaling $86 million in the first quarter of 2023.
The partnership between Live Oak Bank and Berkadia, which commenced in October 2022, has closed $143 million of bridge-to-HUD and GSE transactions, the majority of which have been structured as A/B notes with Berkadia funding the B-note.
The interest-only loans typically carry terms of 24 months with rates floating over one-month term SOFR. Loans closed to date facilitated purchases and refinances of four assisted living and memory care communities, two skilled nursing facilities, and one independent living facility. The properties and borrowers are scattered throughout the country as there are no geographic constraints for the loan program.
Managing Director Jay Healy of Berkadia Seniors Housing & Healthcare led the transactions.
“I’m pleased that we’ve created a program to allow strong sponsors to leverage our balance sheet to secure bridge loans that a bank might not otherwise be able to fund on their own,” said Healy. “These are quality, cash-flowing assets in good markets that simply need a little more NOI seasoning to qualify for HUD and/or Fannie Mae or Freddie Mac financing. With performance still rebounding after COVID, staffing and inflationary pressures, we’ve been able to solve problems for borrowers and fill a void in the market, particularly as permanent interest rates have been less accommodative.”
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.