Berkadia Provides $76.8M Acquisition Financing for Nine-Property Skilled Nursing Portfolio

NEW YORK CITY — Berkadia’s Seniors Housing & Healthcare Group, based in New York City, has provided $76.8 million in acquisition financing for nine skilled nursing facilities in Florida, Maryland, Michigan, Tennessee and Virginia.

The portfolio contains a total of 1,167 operating beds with an average occupancy rate of 85.8 percent. The buyer, an affiliate of a Tennessee-based owner and operator of skilled nursing and assisted living facilities, has leased the buildings since 2004. The seller and names of the facilities were not disclosed.

Jay Healy and Ed Williams lead the transaction team for Berkadia. Berkadia served as the lead lender for the $52.2 million bridge-to-HUD loan for seven of the properties and placed a $24.6 million mini-perm loan through a bank partner for the remaining two properties.

The Berkadia bridge loan is interest-only and carries a floating rate with an initial term of 18 months. The five-year, mini-perm loan, structured for greater flexibility, has a fixed rate for the first 36 months and includes an interest-only period of 18 months. The combined debt service on the total loan amount of approximately $66,000 per bed represents significant savings when compared to the prior lease payment.