The Greystone Advantage
Greystone has a long history of financing healthcare projects, and we admire the commitment providers have for their communities. They face unique challenges, and we understand that from our experience working with owners and operators of skilled nursing, assisted living, independent living, supportive living, and memory care facilities. We are committed to providing our clients with optimal financing solutions so they can achieve their goals and focus on providing quality care for their residents.
#1*
Experienced Team
Debt Solutions
Case Study
THE SITUATION
The borrower sought acquisition financing for a 210-bed skilled nursing facility in Virginia. The property offers specialized care services and modern amenities, positioning it as a high-quality healthcare asset in a competitive market. The borrower required a flexible financing structure to facilitate the purchase while preparing for a long-term HUD execution.
THE SOLUTION
Greystone provided a $33,900,000 bridge-to-HUD loan to support the acquisition. The interest-only financing carries a 24-month term with two 6-month extension options and a floating interest rate. An interest rate cap was secured to mitigate exposure to market volatility while maintaining flexibility during the bridge period.
Due to strong credit metrics and a longstanding relationship with a repeat borrower, Greystone was able to provide 97% loan-to-cost (LTC) financing. Furthermore, by assisting the borrower in renegotiating the purchase and sale agreement (PSA) with the seller and employing creative structuring, the borrower was able to acquire a second asset at a significant discount.
THE RESULTS
The bridge loan enabled the borrower to complete the acquisition quickly while maintaining a clear path to long-term HUD-insured financing. The structure provided the necessary capital to stabilize operations and optimize performance ahead of the planned permanent takeout. By combining speed, flexibility, and rate protection, the financing supported the borrower’s growth strategy in the skilled nursing sector and strengthened the facility’s position for future success.
THE SITUATION
Our client recognized the need for quality Memory Care & Assisted Living services in the south shore of Long Island with a vision to repurpose the Gulden’s (Mustard) family summer homestead into a premier facility. They were in search of new construction financing to develop a project that would provide high leverage debt at low interest rates. The market dynamics posed a challenge as their timing unintentionally coincided with the covid pandemic outbreak in New York. As risk factors rose, construction lending became scarce with limited options.
THE SOLUTION
The FHA 232 loan was the solution for this project, providing construction-to-long-term permanent financing with favorable terms. It enabled the transformation of this historic site into an assisted living and memory care community that preserves the mansion’s architectural integrity and introduces 72 specialized rooms with innovative Montessori-based therapies. This approach provided funding for a state-of-the-art facility and ensures that residents enjoy a connection to the property’s rich history as well as a beautiful marina and oceanfront views just minutes away.
THE RESULTS
Netherbay is emerging as a landmark healthcare development project, redefining the landscape of senior care on Long Island’s beautiful Bay Shore. Greystone’s guidance in the application and financing process played a pivotal role in helping realize the client’s vision. The community will provide an exceptional care option that supports seniors with memory conditions in a facility designed to foster dignity, comfort, and a sense of belonging.
