Berkadia Originates $47M Financing for Five Skilled Nursing Facilities

CHARLESTON, S.C. — Berkadia Seniors Housing & Healthcare has arranged $47 million in financing for five skilled nursing facilities across the country. Jay Healy secured the financing on behalf of multiple borrowers.

In the first loan, Berkadia arranged the HUD refinancing of a 40-bed, Medicare-only skilled nursing facility in Sacramento. The $14.5 million, 48 percent loan-to-value financing retired the construction debt and covered transaction costs for the California-based client. The facility was constructed in June 2018, but did not receive its Medicare certification until August 2019. Occupancy at the time of closing was approximately 95 percent.

In the second financing, Berkadia arranged a $10.4 million bridge loan to refinance existing HUD debt and cover approximately $3.6 million of capital expenditures for a 105-bed skilled nursing facility in Yakima, Wash. Originally built in 1975, the five-star facility has historically averaged 90 percent occupancy and a Medicare mix of approximately 30 percent. Berkadia plans to refinance the bridge debt through HUD in 2022.

For the third transaction, Healy secured a $9.2 million HUD loan secured by a 90-bed skilled nursing facility in East Haven, Conn. The Connecticut-based borrower acquired the property and its assets for $8.5 million in 2018 after the prior owner had defaulted on their debt. The 80 percent loan-to-value loan paid off the first mortgage, as well as additional debt incurred in connection with renovations.

In the fourth transaction, Healy completed interest rate reductions on two existing HUD loans totaling $13 million for a Baltimore-based sponsor. The borrower was able to reduce its 4 percent notes rates to below 3 percent, resulting in annual debt service savings of nearly $80,000.