Michelman & Robinson, LLP Closes Historic HUD-Insured LoanPDF
Michelman & Robinson, LLP is pleased to announce that two of our attorneys, health care transactional partner Mark Zafrin and real estate partner Mark Frimmel, have recently closed the largest HUD-insured loan ever on a single building in the United States. The loan, having a principal amount of $126,925,400.00, was in connection with the refinancing of the Upper East Side Rehabilitation and Nursing Center in New York City. The lender on the deal was KeyBank National Association, which was represented by Matthew Porter of Vorys, Sater, Seymour and Pease LLP (Washington, D.C.). Of note, Messrs. Zafrin and Frimmel handled the purchase of the property back in 2015.
The refinance transaction was threatened at the 11th hour when HUD’s counsel suggested that an area of the premises was used as a beauty salon, requiring a change to the Certificate of Occupancy. Nevertheless, after days of diligent research and negotiation by Messrs. Zafrin and Frimmel, HUD was convinced that the relevant appraisal report erroneously listed the beauty parlor on one of the building’s floors, and the closing was able to proceed as scheduled.
Given the historic nature of the deal, Mr. Zafrin was especially pleased. He said, “Mark and I have closed many a transaction in the health care space, but this one is particularly special given its size. Never before has HUD insured a loan on a single structure north of $125 million, and it’s our honor to have been involved on behalf of our client and M&R.”