Lancaster Pollard recently completed $21 million of Federal Housing Administration Section 232/223(f) financing for two nursing facilities, both located in Texas.
For the first, the firm assisted Prestonwood Rehabilitation & Nursing Center, a 132-bed facility, to refinance $9,710,700 of debt. The FHA refinancing will benefit Prestonwood through significant annual debt service savings and a 35-year fixed interest rate below 4%.
Lancaster Pollard also provided $11,976,000 of permanent debt structure to The Plaza at Lubbock, a 132-bed skilled nursing facility that was constructed in 2007 with bank financing from KeyBank. In this case, the borrower utilized bank financing with the goal of refinancing that debt with permanent FHA debt at the end of the three-year seasoning period.
That debt is now refinanced with an FHA-insured mortgage priced at below 4% fixed for a matching term and amortization of 35 years.
“These facilities are both top performers, making our job much easier than average,” said Jim Neil, Regional Manager of Lancaster Pollard’s Austin, Tex. office, who spearheaded both transactions. “Both had been in the queue for a while but we were all pleased with the acceleration out of the queue during the last quarter or so. The HUD credit committee approvals and closings went very smoothly. With below 4% fixed interest rates, we have two very happy clients.”
Written by Alyssa Gerace