CHICAGO - Beech Street Capital LLChas closed on a $9.6 million loan to refinance the LakePark Center, a 210-bed skilled nursing facility in Waukegan,IL.

The transaction, made under under HUD/FHA223(a)(7), was originated by Joshua Rosen, executivevice president of Beech Street. Working in theChicago office, Rosen heads the firm's healthcareefforts. “Skilled nursing facilities typically have verytight operating margins,”Rosen says in a press release. “The business is bothhighly regulated and extremely labor intensive. Reducing debtservice is critical - which is why werecommended a Section 223(a)(7) loan.” HUD sees the use of Section 223(a)(7) refinancing andmortgage modifications as a default prevention tool to protect itsexisting insured portfolio. The borrower, who was not identified, had beenpaying more than 5% in interest but as a result of thetransaction, that rate was cut in half, according to BeechStreet. Rosen said the firm expects to see more refinanceactivity in the seniors market in 2013. “The conditions are really favorable right nowfor anyone with a current HUD-insured mortgage to refinanceunder Section HUD 223(a)(7),” Rosen says. “Not only are ratesat all-time historical lows, but HUD is reducing the (a)(7)queue."