NEW YORK CITY — Berkadia Seniors Housing & Healthcare, a New York-based financial services firm, has arranged $177 million in financing across seven deals completed from July 15 through the end of October.
Bianca Andujo, Ed Williams, Jay Healy, Rafael Nobo and Chris Cain of Berkadia Seniors Housing & Healthcare completed the financings.
In mid-July, Williams arranged a $13.7 million loan for a 100-unit assisted living and memory care property in Arizona through HUD’s 232/223(f) refinance program. The HUD loan was limited to 70 percent of value to qualify for “reduced seasoning” as it refinanced a cash-out loan originated in late 2021. The cash-out loan was a borrow-up on the construction loan used to finance the property, which was built in phases between 2015 and 2017. The community was 97 percent occupied at the time of closing.
In August, Healy arranged a $10.5 million loan to refinance a 112-unit skilled nursing and assisted living community in Western North Carolina utilizing HUDs 232/223(a)(7) program. The North Carolina-based borrower originally assumed the HUD new construction loan in October 2019 when it acquired the community from nonprofit regional healthcare system. The refinance allowed the borrower to reduce debt service payments and eliminate monthly contributions to replacement reserves, generating savings in excess of $270,000 per year.
In September, Andujo utilized Berkadia’s balance sheet to provide an $11 million loan for the refinance of maturing bank debt as well as related party debt on a 200-bed nursing home in Upstate New York. The property was negatively impacted on the occupancy side through 2020 and early 2021. While occupancy recovered to the mid-90 percent range in mid-2021, the community has since struggled with staffing. Berkadia provided a 24-month, interest-only term loan to allow the New York-based owner-operator to stabilize performance before refinancing with HUD.
In October, Healy secured a $13 million 232/223(f) HUD loan for a Utah-based owner and operator of nursing homes and a repeat customer of Berkadia. The 38-bed, 100 percent Medicare community opened in 2018 and caters to individuals in need of short-term rehabilitation. The community has maintained high occupancy in the upper 90 percent range, even throughout COVID. The HUD note retired bank debt that Berkadia facilitated to refinance the original construction loan and allow the borrower to recoup equity. Because Berkadia kept the HUD loan inside of 70 percent loan-to-value ratio, the borrower was able to avoid HUD’s two-year debt seasoning requirement.
In October, Williams closed a $62 million 232/223(f), 70 percent loan-to-value HUD loan in Portland, Oregon for a Portland-based client. Loan proceeds retired a Berkadia 232/223(a)(7) loan made in 2021 as well as a surplus cash note that Berkadia’s Proprietary Lending Group provided. Berkadia was able to offer the client the borrower to keep its existing HUD financing in place until the closing of the new loan. This independent living, assisted living and memory care property appraised at $352,000 per unit and was 94 percent occupied at the time of closing.
Also in October, Cain and Nobo secured financing for two independent living communities in Illinois and Florida for a repeat client. Cain and Nobo closed a $41.5 million Freddie Mac transaction with a 10-year term and five years of interest-only payments. The loan retired existing debt and provided equity back to the borrower. Cain and Nobo also worked with a capital partner to close a $25.5 million bridge loan in Naples, Florida, where Berkadia was also a participating lender. The loan retires existing bridge debt while providing the borrower time to continue improving operations before going to the permanent debt market.