Berkadia announced the financing of three seniors housing communities located in Washington, North Carolina, and California. Managing Director Jay Healy of Berkadia Seniors Housing & Healthcare secured the financings on behalf of the borrowers.
In November, Jay Healy closed a $22 million bridge to HUD loan for an Olympia, Washington based owner and operator of seniors housing communities. The 18-month interest-only bridge loan retired maturing bank debt plus transaction costs and was underwritten to 74% LTV. It’s secured by a 60-unit, 80-bed memory care community located in Edmonds, Washington, that was developed by the sponsor in 2018. The Berkadia bridge loan will provide the sponsor sufficient time to work through the HUD refinance process, which is expected to be completed in 2025.
Following that, Healy closed a $10.5 million bridge to HUD loan to facilitate the acquisition of a 145-bed skilled nursing facility located in Roxboro, North Carolina. The loan covered 80% of the cost and included an initial term of 18 months with interest only payments. The sponsor, a Wilmington, North Carolina based owner/operator, began operating the community in February 2020 under a leasehold interest with a purchase option. Berkadia anticipates closing the HUD refinance in the first half of 2025.
Finally, Healy closed a $29 million 232/223(f) HUD loan for a Scottsdale, Arizona based seniors housing owner and operator. Loan proceeds facilitated the release of a 117-unit assisted living and memory care community located in Bakersfield, California, that was part of the collateral package for a bank loan secured by multiple properties. The sponsor began operating the 1998-built community in May of 2019 when occupancy was 79% and subsequently purchased it from the REIT landlord in April of 2022. Occupancy at the time of the HUD closing had increased to the low 90% range.
Berkadia Seniors Housing & Healthcare leads the industry in innovative and comprehensive solutions for even the most complex active adult, independent living, assisted living, memory care and skilled nursing projects across the country. In addition to deep market knowledge, the group offers a full set of investment sales, advisory, underwriting, loan origination services and products including FHA, Fannie Mae, Freddie Mac, Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services.
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.
