PHOENIX — Berkadia’s Seniors Housing & Healthcare group has provided $50.3 million in financing for four separate deals encompassing ten seniors housing properties.
In the first transaction, Ed Williams secured a $5.5 million refinancing for a 51-unit assisted living and memory care community in Georgia for a repeat Southeast-based client. The property was constructed in two phases, with the last phase completed in 2008. The community’s historical occupancy has averaged over 90 percent. The Fannie Mae loan, which refinances existing HUD debt, has a 10-year term and two years of interest-only payments. Excess equity from the deal will be redeployed to fund the borrower’s construction and acquisition pipeline.
Williams also secured a $11.8 million refinancing for a 71-unit assisted living and memory care community in Tennessee. The recently constructed property leased up and achieved 100 percent occupancy in seven months and was 98.6 percent occupied at closing. The Fannie Mae loan has a 10-year term and two years of interest-only payments. Proceeds were used to retire the existing bank debt and return equity to the sponsor to fund its construction and acquisition pipeline.
In the third transaction, Chris Cain and Rafael Nobo secured $29.2 million in financing for a seven-property portfolio with 307 units across Tennessee, Arizona, Delaware and South Carolina. The portfolio was operating above 95 percent occupancy at closing. The Fannie Mae variable-rate loan features a 10-year term and five years of interest only payments. Proceeds were used to refinance one community and fund the acquisition of the six other communities.
In the final transaction, Jay Healy secured $3.8 million in HUD financing for a California-based borrower. The loan proceeds will cover 90 percent of project costs associated with the construction of an additional 12-unit memory care cottage in Sumner, Washington. The memory care campus currently consists of two 12-unit cottages collateralized by a HUD 232/223(f) loan that Berkadia closed in 2018. The supplemental loan will run coterminous with the original HUD loan, set to mature in 32 years. Deemed essential by the state of Washington, construction will continue despite COVID-19-related restrictions put in place by the Washington governor.
“Despite the current impact of COVID-19, we have still been able to help our clients identify and capitalize on financing opportunities to enhance their portfolios,” says Williams.