Capital One Closes $12M HUD Loan for Portland Skilled Nursing Facility
The financing proceeds will refinance a comprehensive renovation program of the 128-bed property in Gresham, Ore.
By Ariela Moraru
Capital One provided a $12 million fixed-rate HUD 232/223(f) loan to refinance Regency Gresham Nursing and Rehabilitation Center, a 128-bed skilled nursing facility in Gresham, Ore.
Located at 5905 S.E. Powell Valley Road, the property is 18 miles east of Portland, Ore., and a 10-minute drive from Legacy Mount Hood Medical Center. The facility provides skilled nursing services, rehabilitation therapy, respite and long-term care.
Regency Gresham was built in 1960, with an addition constructed in 1976. The sponsors converted four-person wards and semi-private rooms to semi-private and private ones. The renovation program will be extended to other areas of the facility, with the proceeds of the loan devoted to modernizing the building’s infrastructure, improving common areas and enabling additional therapy services.
“The Lean 232 loan program offers many advantages for owners of skilled nursing facilities, including the opportunity to lock in today’s historically low rates for as long as 35 years,” said Capital One Senior Vice President Joshua Rosen—who originated the transaction—in prepared remarks. “HUD has recently made the program even more attractive by eliminating seasoning on cash-out bridge loans.”
Skilled nursing occupancy
The facility is 63 percent occupied, according to Health Grove. Demand for skilled nursing facilities edged up in the first quarter and occupancy nationwide increased to 82.6 percent, up 36 basis points from the prior quarter and down 163 basis points year over year, according to a report by The National Investment Center for Seniors Housing & Care.
Image courtesy of Capital One