HACO Properties LLC has received $12.8 million in bridge financing for the acquisition of Highland Meadows Health & Rehab, a 120-bed skilled nursing facility in Rockwall, Texas. Greystone provided the non-recourse, interest-only loan with a 24-month term and a 12-month extension option. Helios Health Advisors worked as the debt broker in the transaction.
Greystone has already started working with HACO Properties to work out a strategy to exit the bridge loan with a long-term HUD-insured permanent loan. HUD’s FHA 232/223(f) loan program is specifically designed for financing or refinancing residential care facilities, including skilled nursing care communities.
Located at 1870 John King Blvd., Highland Meadows Health & Rehab encompasses private- and semi-private residential units. The property features amenities such as a salon, dayroom, and library. Therapy services available include physical and speech therapies and specialized programs, such as ortho, stroke recovery, and post-surgical and cardiac rehabilitation. HACO Health Solutions LLC is the operator of the facility.
Recovery on the Horizon for Skilled Nursing
Although the skilled nursing industry is facing various challenges, including Medicare reimbursement cuts, low occupancy rates, and staffing shortages, many operators still recognize the long-term opportunities in the sector as the senior population continues to grow in the U.S., according to insights from The National Investment Center for Seniors Housing & Care (NIC).
While some markets continue to experience prolonged occupancy pullbacks, the majority of primary markets have recovered around 30% of the occupancy loss recorded during the pandemic. These markets include Orlando, Phoenix, New York, and Boston, NIC research revealed.