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Capital One Provides $29.1MM to Refinance Skilled Nursing Facilities

January 29, 2015, 07:03 AM
Filed Under: Real Estate

Capital One Multifamily Finance announced it has provided $29.1 million in fixed-rate, HUD 232/223(f) loans to refinance four skilled nursing facilities in the Los Angeles area for a single owner. The loans include $8.6 million for a 98-bed facility and $6.6 million for a 75-bed facility, both in San Gabriel, $7.7 million for a 107-bed facility in Highland Park, and $6.2 million for a 97-bed facility in Alhambra. Senior Vice President Joshua Rosen originated the transaction.  Rosen leads Capital One’s agency healthcare lending from the company’s Chicago office.

The owners are among the largest providers of skilled nursing facilities in California, and purchased the four facilities using bridge financing in 2013. They turned to HUD financing for the opportunity to lock in current low interest rates for the long term; the loans have terms of between 30 and 33 years. 

 “The 232/223 (f) loan program gives investors an unprecedented opportunity to increase revenue by locking in today’s historic rates for decades to come,” Rosen says.  Rosen also noted that the 232/223 (f) program offers an attractive loan–to-value ratio, and eligible loans are nonrecourse and fully assumable.

Rosen and his team completed the four transactions simultaneously.  “As the population ages, we believe that there will be increasing interest in FHA financing for skilled nursing facilities,” Rosen says.  “We have assembled the expertise needed to meet this rising demand.” 

Capital One Bank’s Commercial Real Estate Group provides financing in markets nationwide, offering a comprehensive array of solutions for property owners and developers, including balance sheet and agency lending, financing, underwriting, and treasury management.               

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