New York Real Estate Journal

Berkadia secures $44 million for skilled nursing facilities in Nassau County and Dutchess County

May 27, 2014 - Brokerage
Berkadia Commercial Mortgage LLC (Berkadia) recently arranged $43.9 million for two skilled nursing facilities located in Nassau County and Dutchess County. Vice president Jay Healy of Berkadia's Seniors Housing and Healthcare group worked with the owner of both properties to secure the fixed-rate financing. Healy secured a 12-year term extension and closed a 29-year, 6-month loan through HUD's 232/223(a)(7) program for a 280 bed facility in Nassau County, which offers around-the-clock nursing care, therapeutic recreational programs, on-site dentistry and a beauty parlor for its residents. In addition, Healy facilitated a note modification through HUD for a five-story building in Dutchess County, N.Y., which consists of 160 beds. The two transactions resulted in combined debt service savings of over $1.7 million for the borrower and were structured in such a way that a master lease was not required by HUD. "We worked with the borrower to develop a strategy that would maximize debt service savings and preserve the features of the old loans that were most important," said Healy. "These transactions involved a tremendous amount of coordination with both HUD and the New York State Department of Health, and ultimately everyone delivered to meet the borrower's first quarter deadline for both loans." Berkadia's Seniors Housing and Healthcare group closed approximately $400 million in HUD and Lean transactions in 2013.