Dealmaker: M&T Realty Capital Corp. Closes $130M

M&T Realty Capital Corp., Baltimore, closed $130 million in seniors housing, healthcare and retail sector loans.

M&T’s Federal Housing Administration/HUD team closed eight loans totaling $126 million in rate modifications and 232/223(f) combined. The properties included seniors housing and healthcare facilities across Maryland, Mississippi, New York, Pennsylvania, Utah, Washington, Connecticut and Virginia.

The transactions all closed during the height of the market volatility and uncertainty created by the COVID-19 pandemic. The loans helped several borrowers reduce their interest rates and generated substantial savings during a time when cash flow was critical.

The new HUD financings secured long-term non-recourse, fixed-rate loans below 2.75 percent. In one case, M&T arranged the closing with HUD to mitigate a COVID-19 outbreak that occurred just after a firm commitment was issued.

M&T also arranged a $4 million life insurance company supplemental financing loan for a 176,500-square-foot retail building in King of Prussia, Pa. Managing Director Rob Kelly from the firm’s Philadelphia office secured a six-year fixed-rate loan with a 30-year amortization schedule. The loan closed at a 3.6 percent rate.