Here’s a roundup of some of the most recent financing transactions in senior housing and care.
Berkadia Originates $13 Million in Refinancing for San Antonio Nursing Facility
Berkadia Commercial Mortgage LLC announced on Jan. 3 that it had originated $12,958,000 in permanent refinancing through its Department of Housing and Urban Development/Federal Housing Administration program for a nursing facility located in San Antonio, Texas.
Stone Oak Care Center, a 152-bed facility built in 2002, features updated amenities such as rehabilitation areas and a private dining area. It is close by to several major healthcare facilities, including North Central Baptist Hospital and Methodist Stone Oak Hospital.
“The Stone Oak Care Center is a best-in-class nursing facility that also benefits from being centrally located near several major hospitals and health care facilities,” said Steve Mentesana, the senior vice president of Berkadia’s Plano branch who originated the refi. “With such strong fundamentals to go along with our solid underwriting, Berkadia was able to smoothly close this loan within 30 days of HUD Commitment.”
The 35-year loan features a 78% LTV with a fixed interest rate of 3.88%, and closed on Nov. 29, 2011 following the completion of a previous bridge loan through Berkadia predecessor Capmark.
Oxford Finance Provides $15 Million in Debt Financing to Healthcare Provider
Oxford Finance LLC, a finance firm that provides senior debt to life sciences and healthcare services companies, announced on Jan. 17 that it closed a $15 million senior secured credit facility to a private equity-backed healthcare services company, which plans to use the funds for the recapitalizations of its business.
“Oxford welcomes the opportunity to foster the growth of an outsourced hospital services provider that is backed by a strong equity sponsor,” said Christopher Herr, managing director for Oxford Finance, in a statement. “The company is well-managed and offers a service that enables hospitals to contain costs while improving patient care.
Lancaster Pollard Facilitates a $4.7 Million Refinance for Iowa Skilled Nursing Facility
Lancaster Pollard recently announced its role in obtaining $4.7 million in refinancing for an Iowa skilled nursing facility. The 69-bed Oskaloosa Care Center wanted to take advantage of current low interest rates, and Lancaster Pollard’s Quintin Harris recommended the FHA’s Section 232/223(f) program.
It took just five business days to get an FHA commitment for the facility, much quicker than average processing times, thanks to low leverage on the project and the thoroughness of the underwriting. This quick turnaround helped minimize the interest rate risk associated with the project, says Lancaster Pollard, and the care center successfully obtained a low interest rate refinance with a 35-year term.
“This was a smooth transaction due to the high quality of the operator and the low leverage on the project, which made HUD comfortable,” said Harris. “Also, our underwriting team did a great job updating information so there were no holes in the package when the project came out of the queue, resulting in the remarkably fast closing.”
Oxford Finance Provides $8.5 Million in Senior Debt Financing to Benchmark Healthcare
Oxford Finance LLC announced on Jan. 26 that it had provided $8.5 million in senior debt to affiliates of Benchmark Healthcare, in a financing package that included a $7.5 million senior secured term loan and a $1 million revolving line of credit.
Benchmark will use the proceeds from the term loan to refinance existing debt and fund capital improvements at its skilled nursing facilities, while the revolving line of creit will be used for working capital.
“Oxford is pleased to provide financial support to Benchmark,” said Christopher A. Herr, managing director to Oxford, in a statement. “The company has an experienced management team with a longstanding reputation for providing quality skilled nursing services in the Midwest and Southeast.”
Creative Health Capital served as Benchmark’s financial advisor.