Walker & Dunlop Arranges Refi for 3 Senior Housing Facilities
- May 27, 2020
After previously providing short-term bridge loans to three senior housing facilities, Walker & Dunlop have transitioned the three properties to long-term financing through a HUD program.
The real estate finance company secured more than $37 million in financing for three properties in Illinois and Michigan. The team that arranged the refinancing was led by Joshua Rosen, senior managing director at Walker & Dunlop.
The HUD refinancing replaced the loans that Walker & Dunlop originally provided to the three facilities through its bridge lending program. The company’s bridge loan program uses its own balance sheet to offer short-term nonrecourse loans of at least $5 million for properties that are being acquired or repositioned. The program also aims to help transition the borrower towards long-term fixed-rate financing whenever ready. Walker & Dunlop also worked with two other multifamily properties in Lubbock, Texas, and Huntsville, Ala., in transitioning their debt through the HUD Lean program in February.
A MIX OF MIDWESTERN FACILITIES
The largest of the three facilities, the 156-bed Grove Fox Valley, received $14,895,100 in financing. Located at 1601 N. Farnsworth Ave. in Aurora, Ill., the facility is 40 miles west of downtown Chicago and located near the area’s hospitals and healthcare facilities. The skilled nursing facility also provides private suites, housekeeping services, family lounges, spa and salon, dining services, transportation options and 24-hour medical assistance.
Also located in Illinois, the supportive living facility Asbury of Kankakee received $7,377,600 in financing. The 98-bed facility is located at 1975 E. Court St. in Kankakee, Ill and was built under the State of Illinois’ Supportive Living Program, which was created as an alternative to nursing homes for low-income seniors or those with disabilities under Medicaid.
In Novi, Mich., WellBridge of Novi received $14,960,000 in financing. The Class A 100-bed WellBridge is located at 48300 11 Mile Road and is 30 miles away from downtown Detroit. Built in 2014, the skilled nursing facility received a five-star rating from the Centers for Medicare and Medicaid Services and earned the Silver Achievement of Quality award from the American Health Care Association in 2019.
Through the individual refinancings, the property owners of Wellbridge of Novi and Asbury of Kankakee were now able to refinance their current bank and partnership debt, according to Walker & Dunlop.