Capital Funding Group announced its involvement in a $18.5 million bridge loan used to acquire a four-building skilled nursing portfolio in Texas.
The deal, which closed in April, was intended as a step toward eventually refinancing the debt through the Department of Housing and Urban Development’s (HUD) 232(f) program.
The portfolio, under the control of a third-party operator, consists of 491 beds across the Lone Star State.
Patrick McGovern served as the originator for the transaction for Capital Funding, which has generated about $2 billion in HUD 232 mortgage lending since the inception of the program. The federal government endorsed about $3.6 billion in 232 loans through HUD’s Federal Housing Administration arm in fiscal 2018, or about $11 million per loan.
The program represents a stable long-term option for nursing home owners and investors, with a non-recourse feature ensuring that the borrower can never owe more than the current value of the property in case of default.
Greystone Lands $7M Funding for 90-Bed SNF
Greystone on Monday announced $7 million in bridge-to-HUD funding for a 90-bed skilled nursing facility in Plainfield, Conn. operated by Colonial Health & Rehab.
Both Greystone and Colonial plan to convert the loan into a 35-year, fixed-rate loan through the FHA 232 program; the New York City-based real estate lending and advisory firm is currently in the process of preparing the permanent financing package.
“This asset speaks to our commitment to our local community, and as the now owner/operator, we look forward to ensuring that the residents and their families can benefit from the beautiful amenities we offer for a long time to come,” Colonial’s Curtis Rodowicz said in a statement announcing the deal.
Greystone’s Lisa M. Fischman originated the initial bridge financing.
“Every member of the Colonial team is compassionate and professional, and I have no doubt their portfolio will grow and prosper,” she said in the statement.
CCRC Plots Modern SNF Addition
The Richfield Retirement Community, a senior living complex with a variety of housing options in Roanoke County, Va., recently broke ground on a modern skilled nursing addition.
The property, set to open in 2020, will be adjacent to an existing short-term rehabilitation facility on the property, local CBS affiliate WDBJ reported.
“The world is changing. People are trying to age in place,” Cherie Grisso, chief financial officer of the non-profit retirement community, told the station. “So skilled nursing is changing. We want to make sure we have a home-like setting for every single resident; that is the biggest shift on this campus.”
The new development will also include 100 new senior living apartments, as well as higher-end amenities such as a hair salon and a fitness center.
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