BETHESDA, MD - 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.
Source: Walker & Dunlop
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.
Walker & Dunlop, LLC, wholly owned by Walker & Dunlop, Inc. (NYSE: WD), was established in 1937. Walker & Dunlop is one of the leading providers of commercial real estate financial services in the United States, with a primary focus on multifamily lending. The Multifamily and FHA Finance groups of Walker & Dunlop are focused on lending to property owners, investors, and developers of multifamily properties across the country. As a Fannie Mae DUS™, Freddie Mac Program Plus® and Map- and Lean-approved FHA lender, Walker & Dunlop lends on most major multifamily asset classes including market-rate apartments, affordable apartments, manufactured housing communities, seniors housing, student housing and certain healthcare facilities. The Capital Markets and Investment Services groups of Walker & Dunlop provide a broad range of advisory, financing, investment consulting and related services.