BETHESDA, MD. — Walker & Dunlop has provided a $104.7 million acquisition loan to Ark Holding Co. for the purchase of 18 skilled nursing facilities in South Carolina, North Carolina and Georgia. The financing was funded utilizing the HUD 232/223(f) loan program that provides low-interest rate, non-recourse financing with flexible prepayment requirements.
There were several critical aspects to this deal including accounts receivable financing, a master lease and a hard close prior to year end, notes Steve Ervin, senior vice president and co-head of Walker & Dunlop's FHA Group.
“The most unique aspect was that the loan was a purchase and closed pre-year end after getting all the commitments,” says Ervin. “Additionally, the loan was executed seamlessly with 18 loans closing on the same day, which is very difficult with HUD.”
This transaction represents Walker & Dunlop's second large-scale skilled nursing financing in 2010 exceeding $100 million. In August 2010, the company funded a 16-facility refinance of the IBHSAR facilities in Florida for $162.2 million.
— Amy Bigley