HUD approves $1 billion LTC loan package submission
The Department of Housing and Urban Development has cleared the way for the submission of a healthcare refinancing package worth approximately $1 billion. Properties in the portfolio are part of the former Mariner Health Care sale, completed in 2004. The HUD-sanctioned portfolio covers more than 170 properties in 19 states.The latest deal is still not complete, as the financier – Baltimore-based Capital Funding Group Inc. -- will still be required to submit approximately 170 separate applications to HUD's local field offices. The HUD approval represents months of work, with months more still to go, noted Jack Dwyer, president and sole owner of Capital Funding Group. Dwyer previously orchestrated a $493 million HUD loan for Life Care Centers of America, the largest HUD healthcare deal on record.
Dwyer also indicated that the latest deal will provide low cost, long–term fixed rate debt. "The relatively low borrowing costs, and the removal of interest rate risk will allow more funds to be budgeted and spent on patient care," Dwyer said.