Seniors Housing
& Healthcare

An Integrated Platform Serving Seniors Housing and Healthcare

A Partner Focused on Your Success.

We’re committed to leveraging our industry-leading platform to help  owners, operators and lenders succeed, even during turbulent times. Our client-focused experts, supported by years of experience and highly seasoned underwriters and analysts, are prepared to advise and guide you into a future defined by success and stability.

Berkadia and Knight Frank’s 2023 Global Healthcare Report

Berkadia and Knight Frank’s 2023 Global Healthcare Report covers the driving factors behind the recent surge in healthcare investment worldwide, the growing need for seniors housing in the U.S., and highlights the transformative role of technology in shaping the industry.
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2024 NIC Spring Conference

Dallas, TX
March 5-7, 2024

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Track Record

Sales
Volume
$1.2B
combined mortgage banking and investment sales volume in
2022 and 2023*
Transactions
Closed
70
mortgage banking and investment sales transactions in
2022 and 2023
Industry
Experts
46
dedicated seniors housing & healthcare professionals

*$1.04B financed across 60 transactions and $157M sold across 10 transactions in 2022 and 2023.

RESEARCH, INSIGHTS and news

Access the latest market-driven insights, research and news from Berkadia.

News

Brighton Gardens of Buckhead, Atlanta GA | Sold and Financed by Berkadia 2024

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Insights

Berkadia Seniors Housing: First Impressions of 2024’s First Quarter

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News

Senior Housing Facilities, FL and OR | Financed by Berkadia 2023

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Insights

The Impact of Federal & State Reimbursement Rates on Nursing Homes

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“Berkadia Seniors Housing & Healthcare 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.”

Steve Ervin
Senior Vice President, Head of FHA/HUD and Seniors Housing Finance

Recent Transaction Spotlight

Investment Sales

Upscale Active Adult

Charlotte, NC

Sold

Brighton Gardens of Brentwood

Brentwood, TN

$11M

Sold

Hardy Springs

Dallas, GA

 

Sold

Mortgage banking

Assisted Living

Broken Arrow, OK

$16.7M
Fannie Mae
105 Units

Financed

Skilled Nursing

Twin Falls, ID

$8.3M
HUD 232/223(f)
60 beds

Financed

Assisted Living & Memory Care

Winchester, VA

$15.4M
Berkadia Bridge
73 beds

Financed

Seniors Housing Loan Programs

Berkadia Seniors Housing Fannie Mae Loan Program

Download Program Details | Connect with a Mortgage Banker

Fannie Mae offers financing solutions for acquisition, refinance, and renovation for existing properties. Berkadia has delegated authority to underwrite Seniors Housing loans, and that means fast decisions and creative solutions.

Eligible Properties

  • Independent living, assisted living, assisted living with alzheimer’s, in any combination, or standalone alzheimer’s/dementia
  • Continuing care retirement communities and properties with skilled nursing units may be considered

Eligible Sponsors & Operators

Sponsors and operators with a minimum of five years experience in the Seniors Housing industry and a minimum of five stabilized properties

Interest Rate & Terms

  • Fixed-rates and variable-rates are available
  • Actual/360 and 30/360
  • 30 to 90-day commitments are available. Early rate lock feature is also available, allowing the borrower to lock a rate 45 to 365 days in advance of closing
  • Terms ranging from five to 30 years are available
Berkadia Seniors Housing Freddie Mac Loan Program

Download Program Details | Connect with Mortgage Banker

Freddie Mac offers flexible loan terms and multiple financing options for a variety of Seniors Housing property types. The programs are specifically designed for the purchase or refinance of Seniors Housing properties. Berkadia has the ability to originate and underwrite Freddie Mac Seniors Housing loans.

Eligible Properties

  • Independent living, assisted living, assisted living with alzheimer’s, in any combination, or standalone alzheimer’s/dementia
  • Continuing care retirement communities and properties with skilled nursing units may be considered

Loan Features

5 to 30 years

Eligible Borrowers

  • Sponsors and operators with a minimum of five years experience in the Seniors Housing industry and a minimum of five stabilized properties

Financing Options

  • Fixed-rate mortgages
  • Adjustable-rate mortgages
  • Structured and affordable transactions including multiple loan pools
  • Supplemental mortgages

Escrow

Fully funded replacement reserve, tax and insurance escrows are required

Early Rate-Lock

Available

Berkadia Seniors Housing 232-223(f) FHA-Insured Financing

Download Program Details | Connect with Mortgage Banker

Non-Recourse, fully assumable financing for purchases and refinances of skilled nursing, assisted living, and memory care communities.

Eligible Properties

  • Project must be licensed (or certified in some jurisdictions) and comply with all HUD, federal, state, and local standards. Independent living is eligible up to 25% of total project beds
  • Project must have been completed or substantially rehabilitated for at least three years and include a minimum of 20 beds
  • Single asset /special purpose borrowing entity required

Loan Features

  • Low, fixed interest rates
  • Up to 35-year term, fully amortizing
  • Non-recourse and fully assumable
  • Eligible transaction costs, including certain owner elective repairs, are mortgageable

Mortgage Loan Amount

The mortgage is limited to the lesser of:

  • 80% of appraised value (85% for non-profits)
  • 100% of eligible transaction costs (refinance) or 85% of eligible transaction costs (acquisitions)
  • 1.45x underwritten debt service coverage ratio

Prepayment

Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions

Escrow 

Monthly escrows for real estate taxes, property insurance, and replacement reserves

Transaction Costs

  • Existing debt or purchase price
  • Repairs not exceeding 15% of appraised value after completion
  • Third-party reports (appraisal, engineering, phase I, and radon)
  • First year MIP
  • Financing and placement fees
  • Borrower and lender legal fees
  • Title, recording, and survey costs
  • HUD application fee of 0.30%
  • HUD inspection fee (greater of $30/bed or 1% of repair estimate)
Berkadia Seniors Housing 232 FHA-Insured Financing

Download Program Details | Connect with Mortgage Banker

Non-recourse, fully assumable financing for construction or substantial rehabilitation of skilled nursing, assisted living, and memory care communities.

Eligible Properties

Licensed skilled nursing, assisted living, and memory care communities, including independent living up to 25% of total bed countInterest Rate and Term

Loan Features

  • Low, fixed interest rates
  • Up to 40-year term, fully amortizing (interest-only during construction period)
  • Non-recourse and fully assumable
  • Combined construction and permanent loan

Mortgage Loan Amount

The mortgage is limited to the lesser of:

  • 75% stabilized LTV assisted living (80% for non-profit borrowers) or 80% LTV for skilled nursing (85% for non-profit borrowers)
  • 90% of certifiable transaction costs
  • 1.45x underwritten debt service coverage ratio

Prepayment

Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions

Escrow

  • Working capital escrow of 4% of loan amount, unused portion will be returned to borrower
  • Initial operating deficit calculated by HUD and available upon issuance of certificate of occupancy
  • Minor movable equipment
  • Monthly escrows for real estate taxes, property insurance, and replacement reserves are requiredAffordable/Rent Assisted (Single-Stage Processing)

Transaction Costs

  • Purchase price of land/buildings or existing debt
  • Certified construction costs, bond premium, builder’s profit allowance, and other fees
  • Architectural fees for design and supervision
  • Appraisal, engineering, and environmental inspection reports
  • MIP during construction
  • Interest, insurance, and real estate taxes during construction
  • Legal, organizational, audit, title & recording, and survey fees
  • HUD application fee of 0.30% & HUD inspection fee of 0.50%
  • FF&E – major fixed and movable items
Berkadia Seniors Housing 232-241(a) FHA-Insured Financing

Download Program Details | Connect with Mortgage Banker

Non-recourse, supplemental financing for repairs, additions, and improvements of properties with existing FHA-insured loan.

Eligible Properties

Project must be insured under section 232 mortgage

Loan Features

  • Low, fixed interest rates
  • Non-recourse and fully assumable
  • Eligible transaction costs, including certain owner elective repairs, are mortgageable
  • Terms of first mortgage remain unchanged

Mortgage Loan Amount

Lesser of:

  • 90% of eligible costs
  • 90% of as proposed value less 90% of as is value (determined by lender ordered appraisal)
  • 90% of stabilized value less all outstanding debt
  • Minimum underwritten DSCR of 1.45x when combining first and supplemental mortgage debt service

Maximum Term

Coterminous with existing mortgage unless otherwise approved by HUD

Prepayment

Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions

Escrow

  • Working capital escrow of 4% of loan amount, unused portion will be returned to borrower
  • Initial operating deficit calculated by HUD and accessible upon issuance of certificate of occupancy
  • Minor movable equipment
  • Monthly escrows for real estate taxes, property insurance, and replacement reserves are required

Transaction Costs

  • Purchase price of land, buildings or existing debt
  • Certified construction costs, bond premium, builder’s profit allowance, and other fees
  • Architectural fees for design and supervision
  • Appraisal, engineering, and environmental inspection reports
  • MIP during construction
  • Interest, insurance, and real estate taxes during construction
  • Legal, organizational, audit, title & recording, and survey fees
  • HUD application fee of 0.30% & HUD inspection fee of 0.50%
  • FF&E – major fixed and movable items
Berkadia Seniors Housing 232-223(A)(7) FHA-Insured Financing

Download Program Details | Connect with Mortgage Banker

Non-recourse, fully assumable, streamlined refinance of existing FHA-insured loans.

Eligible Properties

Project must be insured under section 232 mortgage

Loan Features

  • Low, fixed interest rates
  • Non-recourse and fully assumable
  • Refinance without exiting HUD Section 232 program

Mortgage Loan Amount

Lesser of:

  • Original principal balance of existing insured mortgage
  • Unpaid principal balance of the existing mortgage plus eligible transaction costs including certain owner elective repairs)
  • 1.11x underwritten debt service coverage ratio

Maximum Term

If supported by property condition report, HUD may approve a term extension to the lesser of:

  • 12 years beyond the remaining term of the existing mortgage
  • Original loan term

Prepayment

Standard prepayment schedule is 10% in year one, stepping down 1% annually, however, alternative prepayment structures are available subject to market conditions

Escrow

Monthly escrows for real estate taxes, property insurance, and replacement reserves are required

Transaction Costs

  • Existing debt
  • Prepayment penalty
  • Repairs (not exceeding 15% of appraised value after completion)
  • Property condition report (if term extension is requested)
  • First year MIP
  • Financing and placement fees
  • Borrower and lender legal fees
  • Title, recording, and survey costs
  • HUD application fee of 0.15%
  • HUD inspection fee (greater of $30/bed or 1% of repair estimate)

Client Stories

Seniors Housing Community

Berkadia’s client was facing a loan maturity with a four-property cross-collateralized portfolio. The projects were nearing stabilization from the COVID-19 pandemic, however, the existing lender no longer wished to remain in the deal via a loan extension. Working with the existing lender, Berkadia Managing Director Steve Muth determined a release price for the subject that left a low enough loan balance on the remaining three projects for the client to achieve their desired debt terms.

Upscale
Active Adult

Berkadia Seniors Housing & Healthcare just announced the sale of an active adult community in Charlotte, North Carolina. Berkadia worked together with the seller to identify a capable buyer who had the ability to purchase the asset at the sale price needed by the seller. This required managing the seller’s expectations of a reasonable price of sale while finding a buyer who was willing and able to pay an appropriate price in this rapidly changing environment. 

JASA is a longtime Berkadia client and non-profit organization committed to the safety, health, and well-being of seniors. Recently, Berkadia financed $46M+ in loans for two JASA properties under the HUD 223(f) program. In addition to repairs and upgrades, the higher leveraged, low interest rate loans enabled JASA to allocate funds to programs benefiting their residents.

Leadership

Steve Ervin

SVP - Head of FHA and Seniors Housing Finance

Mortgage Banking

Chris Cain

Managing Director

Jay Healy

Managing Director

Steve Muth

Managing Director

Rafael Nobo

Managing Director

Austin Sacco

Managing Director

Edward Williams

Managing Director

Bianca Andujo

Senior Director

Andrew Lanzaro

Associate Director

Investment Sales

Dave Fasano

Managing Director

Mike Garbers

Managing Director

Ross Sanders

Managing Director

Cody Tremper

Managing Director

Brooks Minford

Senior Director

Want to learn more?

At Berkadia, our capital strength, market knowledge, breadth of experience and deep industry relationships ensure that we can deliver the certainty of execution that our clients depend on.

Read our seniors housing & healthcare brochure today and learn more.

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