Acquisition and Refinancing of Healthcare Properties
3 W. Main St, Suite 103
Irvington, NY 10533
Acquisition and Refinancing of Healthcare Properties
Nursing homes, board and care homes, assisted living and intermediate care facilities that are licensed by state, provide continuous protective oversight and offer three meals daily with a minimum of 20 beds; non-resident day care not to exceed 20% of gross area and 20% of gross income; may include up to 25% non-licensed independent living units
Fixed-rate for term of loan; determined by market conditions at time of rate lock
For-profit or not-for-profit single asset or special purpose entity; must have owned/operated facilities for five years or more
Non-recourse subject to standard carve-outs
Maximum term of 35 years or 75% of the remaining economic life and fully amortizing
Borrower Type | Maximum Loan to Value | Minimum Debt Service Coverage | Maximum Loan to Refinance Cost | Maximum Loan to Acquisition Cost |
---|---|---|---|---|
For-Profit | 80% | 1.45x | 100% | 80% |
Not-For-Profit | 90% | 1.45x | 100% | 90% |
Limited to 20% of net rentable area and 20% of effective gross income
Flexible – best execution typically has a combination of lockout and prepayment penalty for 10 years; fully assumable subject to HUD approval
1.0% due at closing to HUD and .65% annually; .45% for qualifying LIHTC projects
HUD requires minimum coverage of $1MM per occurrence; $3MM aggregate with a maximum deductible of $25,000; waivers may be granted in cases where premiums are high and there is no claim history
HUD Application: .30% of requested loan amount; .20% for properties located in a qualified Opportunity Zone
HUD Inspection Fee: Greater of $30 per unit/bed or 1.0% of repairs
HUD Inspection: .50% for new construction or improvement costs for substantial rehab
Environmental, Appraisal, Capital Needs Assessment, and Radon
3 W. Main St, Suite 103
Irvington, NY 10533