NewPoint Real Estate Capital LLC this week acquired one of the most active financial lenders in the health care space, Housing & Healthcare Finance, as it launches a new lending platform open to operators of all shapes and sizes.
The acquisition will augment NewPoint’s existing agency lending solutions.
“From the NewPoint perspective the vision has been to be the leader in multifamily health care, residential finance, to be able to provide all executions in those spaces to our borrowers and to have the best in class teams being able to serve our clients,” NewPoint CEO David Brickman told Skilled Nursing News. “One of the ways in which we want to differentiate ourselves is by providing additional offerings, additional products, beyond even what’s there.”
The lending platform will serve across all aspects of multifamily and healthcare real estate finance to disrupt the lending business. HHC Finance Founders Erik Lindenauer and Rich Lerner will join NewPoint as co-presidents of the FHA Housing Business Unit.
HHC Finance has closed approximately $7 billion in HUD loans in the last decade and based on loan volume, did 14% of the total HUD LEAN production this past fiscal year.
With prices soaring in the skilled nursing market, Lindernauer expects HHC Finance, now under the NewPoint umbrella, to continue to be active in the space. Whether it’s for acquisition loans, renovation, construction loans, or recapitalization, the new lending platform will be open for business to whatever the client’s needs are.
In July, the lender closed a $58.9 million HUD loan for a skilled nursing facility in New Jersey through HUD’s 232/223(f) program and in June it closed a $13.2 million loan under the same HUD program for a 150-bed SNF in Wisconsin.
“There’s been a lot of consolidation and a lot of sales of large portfolios [in the skilled nursing market], and I think that there is a need to be able to act quickly to provide financing because a seller usually wants to exit fairly quickly,” Lindenauer told SNN.
In previous years, HHC Finance’s loans used to be close to 95% in the skilled nursing space, though it has expanded to include more multifamily opportunities in the past year.
“Right now our pipeline is probably 35% multifamily with the rest being skilled nursing,” Lindenauer said.
As one of the top health care lenders and a top HUD lender, HHC Finance had the expertise and experience NewPoint knew it needed to bring in to grow its health care lending arm.
“What’s working well, we don’t have to change,” he said. “I think there are opportunities to cross-pollinate.”
Teaming up with NewPoint also provides HHC Finance new opportunities to expand as a lender in the health care space, such as the ability to take advantage of other government -sponsored enterprises, such as Fannie Mae and Freddie Mac.
“Partnering with a firm like NewPoint under the leadership of David is going to be advantageous for anybody,” Lindenauer added. “We have been leaders in HUD lending in the health care space since our inception, always finishing in the top three lenders most years, sometimes four or five.”
Companies featured in this article:
Housing & Healthcare Finance, New Point Real Estate Capital LLC
