Twenty-five skilled nursing facilities are being refinanced for a total of $204 million.
Housing & Healthcare Finance LLC (HHC Finance) closed the U.S. Department of Housing and Urban Development (HUD) Loan portfolio for an undisclosed New York-based borrower.
The skilled nursing facilities are located in Florida, Alabama and Mississippi. The portfolio deal is the only one financed through HUD this year, says Charles Dabich, director of business development at Housing & Healthcare Finance.
The 232/223(f) loans refinanced existing conventional debt into stabilized, long-term debt at a fixed interest rate and funded capex.
“The financing presented a number of challenges to close including, a mid-size portfolio review at HUD, adapting to new documentation required under the HUD 232 program during the financing process and a simultaneous close on 25 properties in three states,” said HHC Finance’s Michael Gehl in an emailed statement to SHN. “However, collaborating with the borrower and operator enabled the team to achieve a successful transaction for all parties involved.”
Written by Cassandra Dowell