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Debt & Equity

Bronx nursing home lands first HUD-insured loan for $104M

Workmen’s Circle Multicare Center

Berkadia announced $104.27 million in financing for Workmen’s Circle Multicare Center, a skilled nursing facility in Bronx, New York.

Managing Director Richard Price of Berkadia’s Chevy Chase office and Senior Director Gemma Geldmacher of Berkadia’s Boston office secured the loan through HUD on behalf of Woodbury, New York-based Cassena Care.

The deal closed on June 19, which was 13 days after a firm commitment was issued by HUD’s Office of Residential Care Facilities. Senior Underwriter Trish Maroney of Berkadia’s Syracuse office led the underwriting team.

Maroney was one of the original underwriters of the transaction in 2008 when a Berkadia predecessor company originally funded the FHA-insured loan. The loan has a 20-year fully amortizing term.

Berkadia also provided a bridge loan secured by the project’s surplus cash.

“The Workmen’s Circle transaction involved a complex debt restructuring, which will help solidify the financial stability of this superb facility for the near and long term,” said Price.

“The short duration in closing is a tribute to the superb ownership of Workmen’s Circle and the consulting services provided by Cassena Care, one of the premier skilled nursing consulting groups in this region of the country,” said Geldmacher. “Berkadia and HUD are grateful to Cassena for the quality of the company, which greatly contributed to the timely success of the transaction.”

Located at 3155 Grace Ave., Workmen’s Circle is a five-star skilled nursing facility in the Baychester neighborhood.

Michelman & Robinson, LLP partners Mark Zafrin and Mark Frimmel acted on behalf of the borrower, 3155 Grace Avenue Trust, a Delaware Statutory Trust.

Berkadia was represented by Blair Schiff and Randall Hurlburt of Pepper Hamilton LLP,.

The transaction marks the first time a Delaware Statutory Trust has been approved as a borrower in a loan insured by HUD under its Section 232 program for residential health care.

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