HJ Sims Provides $27M HUD Financing for 15-Property Skilled Nursing Acquisition

NEW YORK CITY — HJ Sims has provided $27 million in financing for the acquisition of a 15-property skilled nursing portfolio.

The borrower is Next Healthcare Capital, a New York City-based company that specializes in the acquisition and leasing of skilled nursing facilities.

Sims previously provided subordinate financing to Next in 2013, 2017 and 2018. Sims worked with Next to provide a subordinate HUD loan to supplement first-mortgage bridge financing to fund the acquisition.

The subordinate financing provides additional leverage, supplementing the senior bridge loan and minimizing the equity requirement from the borrower. The HUD Plus structure allows a portion of the loan to remain outstanding upon a HUD refinancing, avoiding additional transaction costs while maintaining high leverage.

Details on the names, sizes and locations of the skilled nursing facilities were not released.