Bethesda, Maryland – December 6, 2016
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it recently provided $46,875,000 in financing for Crown Point Health Suites, a skilled nursing facility, Regency Retirement Village of Huntsville, a continuing care retirement community (CCRC), and Regency Riverwood Senior Living, an assisted living facility. The properties are located in Texas, Alabama, and Georgia, respectively.
The loans were made through Walker & Dunlop’s proprietary bridge lending program, which provides on-balance sheet, short-term loans (up to 3 years) to borrowers seeking to acquire and/or reposition properties that do not currently qualify for permanent financing through Fannie Mae, Freddie Mac, or United States Department of Housing and Urban Development (HUD)/Federal Housing Administration loans. Originations include skilled nursing, assisted living, independent living, memory care, CCRCs, multifamily, student housing, and manufactured housing. The Company has placed permanent financing on over 80 percent of its bridge loans that have repaid to date.
Walker & Dunlop’s Kevin Giusti and Michael Vaughn led the origination team, which has extensive experience with senior housing and skilled nursing facilities throughout the country. Mr. Giusti commented, “We are pleased to structure financing solutions catered to each client, property and objective in the senior housing and skilled nursing asset class and couldn’t have done so without our proprietary on-balance sheet lending program.” He added, “These types of facilities are particularly important to local economies and the senior citizen population and families living in these communities. We are happy to help contribute to the success of these projects and the residents they serve, and we look forward to continuing these relationships with our clients as they grow.”
When asked for comment, Rick Stern of Regency Senior Living said, “It was a pleasure working with the Walker & Dunlop team on this refinancing. As we encountered the inevitable challenges that arise in every deal, they were helpful and proactive in finding the quickest and least expensive solutions to get through the barriers and get to closing. We will be working with them again!”
Located in Lubbock, Texas, Crown Point Health Suites is a Class A+ facility built in 2011, with additions made in 2013. The state of the art skilled nursing facility received a five-star rating by the Centers for Medicare and Medicaid Services, and features multiple dining venues and common areas. The property has achieved an average of 89 percent occupancy from January 2015 to mid-year 2016, and features 108 private units. The $15,500,000 loan represents 74.8 percent of value and provided the owners with cash for capital improvements and an expansion facility.
Regency Retirement Village of Huntsville, Alabama is a continuing care retirement community built in 1980, with the addition of a skilled nursing facility built in 2015. The 280-bed/254-unit property specializes in skilled nursing, independent and assisted living, as well as memory care. The $20,500,000 refinance/cash-out loan was structured with performance earn-outs over $30,000,000. The terms of the bridge loan will allow the borrower additional funding to convert an existing wing to a 36-bed/34-unit assisted living wing with space allocated to veterans.
Regency Riverwood Senior Living is an assisted living and memory care facility built in 1985, with additions and renovations made in 2012. The 80-bed facility includes 34 memory care units, and an additional wing of 24 units is scheduled to be built through the HUD 241(a) program after take out of the bridge loan. The Rome, Georgia property is located downtown, less than one and a half miles away from two major hospitals.
Both Regency Retirement Village of Huntsville and Regency Riverwood Senior Living were structured as 1 to 3 year terms, floating-rate, and interest-only. The properties were positioned for HUD take-out financing, and resulted in the payoff of three loans and the consolidation of financing into two loans - one for each property, with the third owned outright after the Walker & Dunlop refinance.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.