Long Island Skilled Nursing Asset Snags $71M Refi

Massapequa Center Rehabilitation & Nursing. Image via Google Street View

The U.S. Housing and Urban Development (HUD) has flexed its muscles in the institutional care space again by insuring a $71.3 million loan to refinance a 320-bed skilled nursing facility in Long Island, N.Y. The news comes after HUD’s Section 232 program for residential care facilities registered $3.7 billion in total initial endorsements in fiscal year 2019, up 4 percent year-on-year.

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Greystone provided the latest financing for Massapequa Center Rehabilitation & Nursing, which is located at 101 Louden Ave., in the Suffolk County village of Amityville. Built in 1974, the property is owned and operated by the Fuchs family and offers long- and short-term care, adult day care and dementia care, as well as a stroke rehabilitation center.

Managing Director Fred Levine of Greystone originated the permanent Federal Housing Administration (FHA) financing, which features a 30-year term and 30-year amortization as well as a low, fixed rate. The new financing enables the borrower to exit the initial bridge financing used for the November 2017 purchase while pressing ahead with large-scale renovations.

More upgrades ahead

The facility has undergone $8.5 million in upgrades since it was built, including the addition of private suites, a new commercial kitchen and a large rehabilitation and wellness center, as well as comprehensive renovations to the entrance lobby, geriatric units and nurse stations. Massapequa Center touts its exclusive therapy programs, which include recreational and lifestyle amenities available to residents on-site.

Last May, Greystone arranged $71.9 million in financing for the acquisition and refinancing of a seven-property skilled nursing portfolio across North Carolina and Kentucky. Levine originated the financing on behalf of the unnamed borrower.