Capital One Multifamily Finance has provided $22.6 million in fixed-rate, HUD 232/223(f) loans to refinance three skilled nursing facilities in the Midwest. The transactions include an $8.7-million loan for a 208-bed facility in Chicago, a $4.6-million loan for a 143-bed facility in Oak Lawn, Illinois, and a $9.3-million loan for a 111-bed facility in Saint Cloud, Minnesota. All three transactions were closed the last week in September.
The transactions were originated by Joshua Rosen, Senior Vice President of originations, who leads Capital One’s agency healthcare lending from the company’s Chicago office. The borrower has closed several deals with Capital One Multifamily Finance during the last year and has assembled an extensive portfolio of skilled nursing facilities in the Midwest over the last decade.
“These deals highlight the advantages for borrowers of building a consistent relationship with their lenders,” Rosen says. “After having gone through the HUD application process several times with this borrower, we have learned to work together very efficiently. In this case, we were able to complete three HUD transactions simultaneously.”
Rosen believes that currently one of the prime advantages for the health care borrower of the 232/223 (f) program is the opportunity to lock in an attractive rate for a long term. In this case, the three loans have terms of between 30 and 35 years. “The 232/223 (f) program is a great deal in the current environment,” Rosen says. He also pointed out that the loans are nonrecourse and fully assumable.