Berkadia, a leader in the commercial real estate industry, with Berkadia Seniors Housing & Healthcare, announced the financing of four seniors housing communities totaling $29.9 million located in Mississippi, Florida, and Indiana, with all the deals closing since November 2024.
In November 2024, Managing Director Steve Muth and Associate Director Andrew Lanzaro of Berkadia Seniors Housing & Healthcare successfully leveraged HUD’s 232/223(f) program to close two loans totaling $8.9 million for a first time HUD borrower. The loan proceeds retired maturing bank debt on two Mississippi communities: a 40-unit assisted living facility, and a 47-unit assisted living and memory care facility. At underwriting, one community was fully occupied, while the other had an occupancy rate of 86%. Both properties are located in opportunity zones which allowed the transactions to benefit from expedited processing by HUD. The loans feature a 35-year term and an average LTV of 74%.
Managing Director Ed Williams of Berkadia Seniors Housing & Healthcare also closed a notable transaction in November 2024, successfully securing $9.2 million in financing for a repeat borrower in Florida through HUD’s 232/223(f) program. The asset was a 174-bed skilled nursing and assisted living facility in Miami, Florida.
The sponsor, an experienced HUD borrower and long-time client of Berkadia, owns thousands of beds across four states. The loan proceeds were used to retire partnership debt, and the remaining balance of a $78.6 million bridge loan was funded by Berkadia and a bank partner. The bridge loan had been used to acquire a seven-property nursing home portfolio in Florida, with all but one property transitioning to a 232/223(f) HUD refinance. At the time of closing, the property enjoyed a 91.6% occupancy rate over the trailing 12 months.
In December 2024, Williams closed an $11.8 million loan utilizing HUD’s 232/241(a) program for a skilled nursing and assisted living expansion in Indiana. This loan carries a 35-year term, slightly longer than the remaining term on the existing HUD mortgage. It also marks the third 241(a) loan Williams has closed with the sponsor since 2020. The loan proceeds will be used to convert eight skilled nursing units from semi-private to private and construct a 37-unit assisted living wing on the premises, expanding the continuum of care at the community for the foreseeable future. Occupancy at the facility was 88% at the time of HUD Firm Commitment.
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
