NAI Bluestone secures $39 million in financing for PA/N.J. portfolio

NAI Bluestone Real Estate Capital has secured $39 million in financing for a three-property portfolio located in Penn. and N.J. on behalf of a senior housing owner/operator. HUD provided $22 million in financing and an additional $17 million was secured from local banks and new equity funding. "Today's lending environment makes it essential to leverage creative financing solutions to successfully recapitalize existing debt for overleveraged properties," said Shawn Sweeney, senior associate, NAI Bluestone Real Estate Capital. "In this case, the deals needed new equity and restructured sponsorship to secure the financing, along with a write down from the previous lenders, which can be incredibly challenging in today's market." Two properties in the portfolio are located in Pennsylvania and include 239 beds of independent, assisted living and skilled nursing communities. For these communities, Bluestone successfully negotiated a reduced payoff with the former lender, restructured the ownership and management at the properties, and secured $22MM in financing through HUD's 232(a)7 - LEAN program. The fully amortized, 35-year fixed rate loan is fixed at 5.25 percent.