Berkadia Commercial Mortgage LLC (Berkadia) recently arranged $11.1 million in financing through the U.S. Department of Housing and Urban Development’s (HUD) 223(a)(7) program for two assisted living facilities located in Oregon and Washington. Assistant Vice President Jay Healy worked with David Stroud from Regency South, Inc. to secure the 28-year, fixed-rate financing. The Berkadia team assisted the borrower in taking advantage of today’s low interest rate environment to realize significant savings in annual debt service.
The loan was used to refinance existing mortgages on Sun Terrace Hermiston, an 82-bed facility in northern Oregon, and Sun Terrace Prosser, an 86-bed facility in southern Washington.
Both loans were closed within 50 days of the issuance of HUD’s Firm Commitments to meet the borrower’s closing goal. Regency Pacific has operated both properties since 2010.
“We were very satisfied with the work done on this loan and would like to work with Jay Healy and the rest of the Berkadia team again,” said Stroud.
“Our expertise in working with HUD on these types of assets allowed our team to quickly and efficiently address the loan elements needed to achieve the borrower’s goals,” said Healy. “We look forward to having another opportunity to work with Regency.”
The Berkadia Seniors Housing & Healthcare division was formed to solely focus on providing financing solutions to the Seniors Housing and Healthcare industry for acquisitions, construction and re-financing. The asset types cover the entire healthcare spectrum from independent and assisted living to skilled nursing and hospital facilities. Financing programs include Fannie Mae, Freddie Mac, FHA/HUD and Berkadia's proprietary bridge financing.