NewPoint Expands Healthcare Lending Platform with Acquisition of HHC Finance
NewPoint Real Estate Capital LLC this week acquired one of the most active financial lenders in healthcare, Housing & Healthcare Finance, as it launches a new lending platform open to operators of all forms and sizes.
The acquisition will augment NewPoint’s existing agency lending solutions.
âFrom NewPoint’s perspective, the vision has been to be the leader in multi-family healthcare, residential finance, to be able to provide all executions in these spaces to our borrowers, and to have the best teams capable of serving our clients. NewPoint CEO David Brickman told Skilled Nursing News. âOne of the ways we want to differentiate ourselves is to offer additional offers, additional products, beyond even what exists. “
The lending platform will be used for all aspects of multi-family and healthcare real estate finance to disrupt lending activity. HHC Finance founders Erik Lindenauer and Rich Lerner will join NewPoint as co-chairs of the FHA Housing Business Unit.
HHC Finance has entered into approximately $ 7 billion in HUD loans over the past decade and, based on loan volume, achieved 14% of total HUD LEAN production in the past fiscal year.
With prices skyrocketing in the skilled nursing market, Lindernauer expects HHC Finance, now under the NewPoint umbrella, to continue to be active in the space. Whether it is acquisition, renovation, construction or recapitalization loans, the new lending platform will be open to businesses whatever the client’s needs.
In July, the lender has closed a $ 58.9 million HUD loan for a skilled nursing facility in New Jersey through HUD’s 232/223 (f) program and in June he closed a $ 13.2 million loan as part of the same HUD program for a 150-bed SNF in Wisconsin.
âThere have been a lot of consolidations and a lot of sales of large portfolios [in the skilled nursing market], and I think you need to be able to move quickly to provide financing, because a seller usually wants to exit fairly quickly, âLindenauer told SNN.
In previous years, HHC Finance loans were previously nearly 95% in the skilled nursing sector, although they have broadened to include more multi-family opportunities in the past year.
âRight now our pipeline is probably 35% multi-family with the rest being trained nurses,â Lindenauer said.
As one of the leading healthcare lenders and a leading lender in HUD, HHC Finance had the expertise and experience that NewPoint knew it needed to bring to grow its lending arm of. health care.
âWhat works well, we don’t have to change,â he said. “I think there are opportunities for cross pollination.”
Teaming up with NewPoint also provides HHC Finance with new opportunities to grow as a healthcare lender, such as the ability to leverage other government-sponsored companies, such as Fannie Mae and Freddie Mac. .
âPartnering with a company like NewPoint under David’s leadership will be beneficial for everyone,â Lindenauer added. âWe’ve been the healthcare leader in HUD loans since our inception, consistently finishing in the top three lenders most years, sometimes four or five. “