LOS ANGELES—The owner of four nursing facilities in the Los Angeles market has secured $29.1 million in FHA loans to refinance the properties. The fixed-rate HUD 232/223(f) loans range in value from $6.2 million to $8.6 million, and will help to increase the revenue of the facilities.

“The 232/223 (f) loan program gives investors an unprecedented opportunity to increase revenue by locking in today's historic rates for decades to come,” explains Joshua Rosen, SVP at Capital One Bank. “As the population ages, we believe that there will be increasing interest in FHA financing for skilled nursing facilities,” Rosen says.  “We have assembled the expertise needed to meet this rising demand.”  Rosen, who is based in Chicago, secured the funds on behalf of the borrower. He was unavailable for further comment.

The four properties include a 98-bed facility and a 75-bed facility in the San Gabriel Valley, a 107-bed facility in Highland Park and a $97-bed facility in Alhambra. The San Gabriel facilities received an $8.6 million loan and a $6.6 million, for the smaller facility. The Highland Park facility secured $7.7 million, while the Alhambra facility received $6.2 million. The loans have 30- to 33-year terms, and all have an attractive loan to value. Rosen added that the loans are eligible for non-recourse and are fully assumable.

The medical office market in general has been healthy. Recently, CBRE experts said that hospitals have been buying on-campus medical facilities. The debt and structured finance team secured $29.7 million for medical office properties in San Diego, Los Angeles and Texas.