Walker & Dunlop has announced the origination of $68.3 million in HUD 232/223(f) loans to refinance seven skilled nursing facilities across Illinois and Wisconsin. The transaction was arranged by the firm’s FHA Finance team, led by Joshua Rosen, Brad Annis, and Johnny Rice, and leverages HUD’s long-term, fixed-rate, non-recourse financing structure. This approach enabled borrowers to replace short-term, variable-rate debt with more stable and predictable capital, thereby enhancing the financial resilience of their healthcare portfolio.
The facilities refinanced through this program represent a total of 380 units. They are part of a broader trend in seniors housing and skilled nursing, where demand continues to rise amid demographic shifts and limited new supply.
With the population aged 80 and older expected to grow significantly through 2030, well-managed communities in supply-constrained markets are positioned for sustained rent growth and stable asset pricing. Walker & Dunlop anticipates modest cap rate compression for core assets and improved financing conditions through GSE and HUD programs, even as new development remains subdued due to rising costs and tighter underwriting standards.
This deal highlights Walker & Dunlop’s deep expertise in healthcare real estate finance and its continued leadership in the HUD lending space.
The firm was recently ranked the #2 HUD lender for both MAP and LEAN volume in 2024, and #4 in HUD construction lending. Between 2022 and 2024, Walker & Dunlop originated $2.4 billion in HUD transactions, underscoring its capacity to deliver tailored financing solutions for complex healthcare assets.
KEY QUOTE:
“With the senior population continuing to grow and new supply remaining constrained, demand for high-quality skilled nursing facilities is stronger than ever. We’re proud to help our client secure long-term, fixed-rate HUD financing on seven properties totaling 380 units, reflecting both the strength of the market and our team’s expertise in complex healthcare real estate transactions.”
Joshua Rosen, senior managing director of FHA Finance at Walker & Dunlop
