Walker & Dunlop Taps HUD's LEAN Program to Refi Nursing, Rehab Facilities
The commercial real estate finance company leveraged a HUD lending program to finance three nursing and supportive living facilities.
Bethesda, MD — Commercial real estate finance company Walker & Dunlop Inc. arranged $37 million in financing for three Midwest nursing and rehabilitation facilities through a US Department of Housing and Urban Development lending program.
Namely, the company has secured $14,895,100 in financing for Aurora, IL, nursing facility The Grove Fox Valley; $14,960,00 for Novi, MI-based WellBridge of Novi; and $7,377,600 for Kankakee, Illinois’ Asbury of Kankakee.
The structurings were led by Walker & Dunlop senior managing director Joshua Rosen. His origination team used the HUD refinancing program LEAN 232/233(f), which provides long-term and reduced-rate financing for specialty health care facilities.
The new permanent financing will replace Grove Fox Valley’s existing debt previously provided by Walker & Dunlop’s bridge lending program, according to the company. Under the lending program, Walker & Dunlop leverages its own balance sheet to offer short-term, nonrecourse loans for acquired or repositioned properties.
For WellBridge of Novi and Asbury of Kankakee, the new long-term financing allows each property owner to refinance their current bank and partnership debt, Walker & Dunlop said.
To be sure, Walker & Dunlop are no strangers to HUD lending programs. Recently, the finance company secured $10 million from HUD to redevelop Washington, D.C’s historic The Hebrew Home into affordable housing.
Walker & Dunlop FHA finance group senior director Rob Rotach said they leveraged various funding sources, including HUD’s 231 loan program and Low Income Housing Tax Credit equity for the deal. Walker & Dunlop also turned to HUD’s 221(d)(4) construction program when it arranged a $52 million loan for a Huntsville, AL, apartment.
Business Expansion
Walker & Dunlop isn’t only financing properties, it’s also expanding its business offerings. In February, it acquired commercial real estate provider MSF Real Estate Capital, which had serviced roughly $925 million of life insurance company loans.
In late January, Walker & Dunlop acquired capital markets advisory firm AKS Capital Partners to grow its offerings for the capital markets sector. Earlier that month, Walker & Dunlop launched a multifamily asset appraisal company called Apprise. Apprise would use machine learning to provide an objective and faster multifamily appraisal, Walker & Dunlop said.