Irwin Shapiro, President of Irwin Realty Group and Director of FHA mortgage activities for New York Urban Servicing Co., Inc., has arranged FHA financing for $20,356,700 for two of the finest nursing homes in the State of New York. The mortgage amount included a second mortgage of $1.7 million. Both facilities were built and are owned by the same borrower.

The Glengariff Nursing Home, which is located on Dosoris Lane in Glen Cove, was constructed in 1975 and included the renovation of the Pratt Mansion. Built on nine acres of wooded land, the two-story, 137,000 SF structure contains a total of 262 skilled nursing beds. These include beds for long-term care and sub-acute care for dementia, injuries, respiratory, wound care and countless other medical problems, making this one of the largest and most extensive sub-acute care facilities in the state. The FHA mortgage amount for the Glengariff Nursing Home was $15,116,400.

The other nursing home involved in this transaction was the Port Jefferson Nursing Home located on Dark Hollow Road in Port Jefferson, New York. The facility was constructed in 1969 and consists of a three-story building built on approximately five acres of land, which is located in a residential section of Port Jefferson near the Long Island Railroad. The building, which has approximately 44,000 SF of space, contains 120 skilled nursing beds and -- like Glengariff -- is also set up to handle a great many sub-acute care patients.

The FHA mortgage amount for this facility was $3,540,300 and the transaction required an additional $1.7 million, which was arranged by Irwin Realty in the form of a loan secured by a pledge of the partnership interest. The $1.7 million was needed to pay off the existing debt and included funds for operating capital.

The FHA mortgages had an interest rate of 7.48% and were fixed for the entire self-amortizing term of 25 years. The Fundex portion of the loan was made for a term of 10 years with a 15-year amortization schedule and had an interest rate of 14%. The FHA mortgages were the first to be completed by the New York HUD Office under the guise of their new (MAP) program, which went into effect at the end of 2000.

New York Urban has been in business for 69 years and is also mortgage correspondent for John Hancock and several other major insurance company lenders.

COPYRIGHT 2001 Hagedorn Publication
COPYRIGHT 2001 Gale Group