Lancaster Pollard recently lined up $8 million of financing through the Federal Housing Administration for two nursing facilities.
Based in Sioux City, Iowa, Touchstone Living Center refinanced debt that was carried by a major bank. Using the Department of Housing and Urban Development’s Section 232/223(f) program, Lancaster and Pollard’s Quintin Harris arranged $3.8 million in financing for the nursing home.
The result was a 30-year fixed rate mortgage loan with a low interest rate, which will fund $800,000 in repairs and improvements.
The company also assisted Bennington Glen, a 100-bed skilled nursing facility in Marengo, Ohio, by refinancing its existing HUD debt using the FHA Sec. 223(a)(7) program. With the $4.5 million financing, the project will save over $40,000 annually in debt service over the remaining 27 year term.
Kass Matt, out of Lancaster Pollard’s home office in Columbus, Ohio, was the lead banker on the deal.
Despite delays for HUD’s 232 program, Harris continues to believe clients will turn to it for financing.
“HUD-insured interest rates are incredibly favorable,” he said in an email to SHN. “Also, HUD is addressing the queue and we are seeing evidence that their changes are working. For example, just recently HUD issued a firm commitment for a project in Iowa only one week after it was pulled from the queue and it is already scheduled to close.”
Written by John Yedinak