Have you ever heard the saying may you live in interesting times? That was the watchword for us last year, as higher interest rates and increasing construction costs posed a significant challenge to our deal pipeline. Nonetheless, we were able to obtain HUD approvals for four multifamily projects totaling $27 million and to keep current HUD refinancing approvals for two assisted living communities totaling about $60 million that were issued at the end of 2021.
The multifamily projects are located in Louisiana, Pennsylvania, New York, and New Jersey; three are existing, affordable “age-restricted” properties and one is market-rate new construction currently over 70% completed. The age restricted deals recapitalized existing properties, providing their owners with cash-out equity or developer fees, and funds for repairs, reserves and capital improvements.
It was the first time that all our yearly activity was in the multifamily space.
But healthcare remains a significant part of our portfolio: we are currently tracking seven “bridge-to-HUD” transactions for 13 assisted living, memory care and personal care properties originated through HJSI, the for-profit banking platform of our parent company, HJ Sims.
Although SMF is active nationally, our core team is comprised exclusively of individuals born and raised in the New York – New Jersey metropolitan area. In October, we expanded our operations – and cultural and linguistic horizons – by adding a correspondent office in Salt Lake City, UT to cover the Mountain West and West Coast, adding to our 22-state footprint.