Walker & Dunlop provides $104.7 million for acquisition of 18 skilled nursing facilities

Jan 10 2011

Walker & Dunlop, LLC announced today that on December 29, 2010, it provided $104.7 million of acquisition funding to Ark Holding Company for the purchase of 18 skilled nursing facilities located in South Carolina, North Carolina and Georgia. This transaction represents Walker & Dunlop's second large-scale skilled nursing financing in 2010 exceeding $100 million. In August 2010, Walker & Dunlop funded a 16 facility refinance of the IBHSAR facilities in Florida for $162.2 million.

The financing was funded utilizing the HUD 232/223(f) loan program that provides low interest rate, non-recourse financing with flexible prepayment requirements. The loans were underwritten to a 2.60 debt service coverage with occupancy greater than 90%.

"There were several critical aspects to this deal including accounts receivable financing, a master lease and a hard close prior to year end. The coordination of these elements, along with timely execution by HUD staff, made this deal possible. The financing is structured to provide maximum flexibility so Ark Holding Company can upgrade their facilities in the coming years," said Walker & Dunlop Senior Vice President and Co-Head of the FHA Group, Steve Ervin.

SOURCE Walker & Dunlop