Berkadia Commercial Mortgage, LLC (Berkadia) recently originated $59.8 million through the U.S. Department of Housing and Urban Development’s (HUD) 232/223(a)(7) program to refinance a portfolio of 12 skilled nursing facilities located throughout the state of Arkansas. Assistant Vice President Jay Healy worked with borrower Omega Healthcare Investors, Inc. (NYSE: OHI) to secure the financing.
Omega Healthcare Investors acquired the assets in December 2011 and assumed HUD debt through a transfer of physical assets. Berkadia closed all 12 loans simultaneously on March 26, 2013, less than 45 days from the issuance of the final firm commitment from HUD, achieving the borrower's goal of a first quarter close. As a result of the portfolio refinance, the borrower is realizing approximately $1 million in annual debt service savings.
The portfolio is made up of individual loans ranging from $1.9 million to $9.4 million and consists of over 1,400 beds. The facilities are located across 11 different cities, including two just outside of Little Rock, Ark.: Premier Health & Rehabilitation in North Little Rock, Ark. and Canyon Springs Health & Rehabilitation in Hot Springs, Ark.
"We were pleased that Berkadia was selected to execute this portfolio refinance,” said Healy. “Omega is a sophisticated owner and has a sound investment strategy in place for these assets. I look forward to having the chance to partner with this group again in the future."