Love Funding Corporation recently closed on a $9.22 million construction loan for Orchard Park of Murphy, a 90-bed senior assisted living and Alzheimer’s community located in Murphy, Tex.
McFarlin Group, a senior housing developer based in Dallas, Tex., recently broke ground on the $13 million project, which is slated for completion during the summer of 2012. Upon completion, the community will serve 57 assisted living residents, with a separate, secured wing for 33 Alzheimer’s and dementia care residents.
Love Funding Vice President Joshua Hausfeld closed the construction loan, which was secured through the Department of Housing and Urban Development’s Section 232 LEAN loan program. This enabled the property’s owners, McFarlin Group and Caddis Partners, to lock in a non-recourse loan at a low fixed interest rate with a 40-year term.
Hausfeld used HUD’s new modified firm application for new construction projects, which shortens the process by letting borrowers skip pre-application procedures and submit architectural plans and other specifications after the initial filing and approval from HUD. The agency is using this modified application to try to expedite approval times as demand for its loan insurance programs grows amid a scarcity of private lending for capital-intensive construction projects.
“HUD continues to revamp its procedures to help push applications through the pipeline and put capital to work in the economy to help create new jobs,” said Hausfeld in a statement.
Weis Builders, Inc. was the general contractor with Galier, Tolson and French Design Associates as the architect.
Hausfeld also secured $14 million in HUD financing earlier in the year for a previous McFarlin Group project, Orchard Park of McKinney, in McKinney, Tex. The group is working on two other construction projects currently pending with HUD.
Written by Alyssa Gerace