KAILUA-KONA, Hawaii — Berkadia Seniors Housing & Healthcare has provided a $16.6 million refinancing for 123-unit assisted living community in Kailua-Kona, located on the west coast of the Hawaii Island.
Jay Healy secured the loan. The 35-year loan was secured through HUD’s 232/223(f) Program. The financing retired a $11.7 million Berkadia bridge loan funded in August 2017 to facilitate the acquisition and subsequent $4.5 million renovation completed in early 2020.
The borrower was also able to utilize HUD loan proceeds to pay off the remaining balance of the unsecured seller financing, as well as some outstanding partnership debt.
The borrower, a Washington-based owner-operator, previously managed the building on behalf of the seller. At the time of purchase, occupancy was well below its potential due primarily to capital expenditure needs. As part of the remodel, the buyer addressed all deferred maintenance, updated the common areas and installed solar panels for both electricity and hot water. As a result, the new owner was able to push rents and bring occupancy up to 87 percent, a number which is expected to continue to increase as COVID-depressed occupancy improves across the sector.
The post Berkadia Provides $16.6M Refinancing for Assisted Living Community in Kailua-Kona, Hawaii appeared first on Seniors Housing Business.
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