Senior Housing Finance Activity: Berkadia, Beech Street, Cambridge

Berkadia Originates $25.8 Million in Supplemental Loans for Capital Senior Living

Berkadia Commercial Mortgage LLC’s Lenox, Mass. office recently closed on $25.8 million of supplemental financing on a portfolio of loans for affiliates of Capital Senior Living Corporation. 

Christopher Fenton, a vice president at Berkadia, worked with lenders at Fannie Mae and Freddie Mac to secure the financing on 11 properties belonging to two separate portfolios that had been originally financed through Berkadia. Capital Senior Living plans to use the supplemental loans to help fund future acquisitions. 

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“This financing represents just some of the great work that we’ve been able to do with Capital Senior Living over the years, and we are grateful for the confidence they show in Berkadia with each transaction,” said Fenton.  “It’s a pleasure to work with a company that excels at providing essential services to seniors and takes pride in the stewardship of their assets.”

Capital Senior Living is headquartered in Dallas, Tex. and is one of the nation’s largest operators of senior living communities, which offer a continuum of care. 

Beech Street Capital Closes $9.9 Million Loan for Pa. Skilled Nursing Facility

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Beech Street Capital, LLC announced on Wednesday it has provided a $9.9 million HUD Section 232/223(a)(7) loan to refinance Sterling Healthcare and Rehabilitation Center, a 164-bed skilled nursing facility in Media, Pa. 

Working out of Beech Street’s Chicago office, executive vice president Joshua Rosen originated the transaction. 

The financing structure arranged by Beech Street allows the borrower to take advantage of “tremendous” debt-service savings, says the mortgage banking company. 

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 “The package held up wonderfully during HUD processing,” said Rosen. “The Beech Street team was able to issue a commitment quickly, speeding up the entire process for the borrower.” 

Beech Street provided a 31.5-ear term with an attractive interest rate, allowing the borrower to keep the same term and amortization period as the existing loan. Sterling Healthcare and Rehabilitation Center was built in the 1950s but is in very good condition as the owner has invested in the property with updates and upgrades. It is more than 93% occupied. 

Health Care REIT Completes $811 Million Equity Offering

Health Care REIT Inc. (NYSE:HCN) announced on Monday it had completed its secondary offering of 13.8 million common shares at $58.75 each, for a total gross proceeds of about $811 million. The offering including 1.8 million shares sold to underwriters exercising their option to purchase additional shares. 

HCN has previously said it plans to use the net proceeds of the offering to repay advances under its unsecured lines of credit; repay other outstanding indebtedness; and for other general corporate purposes, including investing in healthcare and senior housing properties.

BofA Merrill Lynch, Morgan Stanley, UBS Investment Bank, Barclays, J.P. Morgan, and Wells Fargo Securities acted as joint book-running managers for the offering. 

Cambridge Processes More than $2.02 Billion in Loan Requests in First Half

Cambridge Realty Capital Companies has experienced a 10% rise in senior housing and healthcare mortgage loan origination requests in the first half of 2012 compared to the same period in 2011.

The company has processed 155 loan requests totaling more than $2.02 billion. In June alone, Cambridge processed 31 loan origination requests totaling $368.1 million.

Not every loan request is closed, the company notes, but tracking this data can indicate market trends, and at this time, borrower interest remains strong. 

“With HUD making dramatic improvements in its ability to process loan applications more swiftly, a higher percentage of borrowers have been able to move into popular, low-cost, FHA-insured mortgage loans at bargain rates,” says Cambridge. 

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