Capital Funding Group Closes Two HUD Loans for Senior Housing in Texas and North Carolina
Baltimore, Maryland-based Capital Funding Group recently announced the closing of a $2.45 million HUD refinance for an assisted living community in North Carolina and a $17.4 million HUD refinance for a 101-bed skilled nursing facility in Houston, Texas.
Specifically, the $2.45 million HUD refinance for the assisted living community in North Carolina will refinance existing HUD debt to achieve a lower interest rate. Director of Real Estate Finance Gary Sever secured the loan, which closed on March 31.
The $17.4 million HUD refinance in Texas, meanwhile, consolidated existing indebtedness and included $450,000 to be used in owner-elected repairs for a variety improvements and additions to the property. Director of Real Estate Finance Patrick McGovern secured the loan, which closed on March 30.
Love Funding Secures $4.5 Million Loan for Age-Restricted Housing in New Jersey
Washington, D.C.-based FHA multifamily, affordable and health care financing provider Love Funding recently announced the closing of a $4.5 million loan for the preservation and refinance of John P. Renna House, an affordable, age-restricted apartment community in West Orange Township, New Jersey.
The John P. Renna House has 183 units, 181 of which are limited to tenants age 62 and older, or people with disabilities. The property is managed by Raymond P. Marzulli Co., Inc. and owned by the West Orange Senior Citizens Housing Association, Inc.
Love Funding Midwest Regional Director Bruce Gerhart secured the loan via the U.S. Department of Housing and Urban Development’s Section 223(f) mortgage insurance program after the units were converted via HUD’s Rental Assistance Demonstration (RAD) program.
As part of the deal, a new 20-year housing assistance payments contract was implemented for the 181 units. Additionally, the financing provided the ownership team with non-recourse, low-rate financing for a 15-year term, and a portion of the proceeds will be utilized to fund repairs and a replacement reserve account.
Sims Mortgage Funding Recapitalizes Minnesota Affordable Housing Projects
HJ Sims subsidiary Sims Mortgage Funding (SMF) recently announced the $2,358,000 recapitalization for Good Shepherd Apartments, a senior housing community located in Sauk Rapids, Minnesota.
SMF originated the loan insured under the Section 223(f)/202 program that was processed by the Fort Worth HUD Office under the Multifamily Accelerated Processing (MAP) program. Proceeds were utilized to prepay the project’s Section 202 Direct Loan, establish a repair escrow of $482,700 and fund $343,600 in an initial deposit to the Reserve Fund for Replacements.
Additionally, the sponsor—Good Shepherd Community—received a 15% Developer Fee that was entirely disbursed at closing. The underwriting also generated extra loan proceeds to fund $594,000 in capital improvements for the PRAC communities.
CBRE Arranges Construction Financing for Avanti Senior Living
CBRE National Senior Housing Vice Chairman Aron Will recently arranged construction financing on behalf of a joint venture between Texas-based senior housing operator Avanti Senior Living and investment adviser Iron Point Partners for Avanti Senior Living at Watercross, a to-be-built Class-A 90-unit assisted living and memory care community in Covington, Louisiana.
Specifically, CBRE secured a $14.025 million, floating-rate, four-year loan with 48 months of interest only from a regional bank.
CalHFA Contributes Funds to Senior Apartments in California
A collaboration between the California Housing Finance Agency (CalHFA), federal and local partners, nonprofit developer BRIDGE Housing Corporation and others has resulted in the renovation of the 100-unit Ocean View Senior Apartments in Pacifica, California.
Specifically, CalHFA provided the project with a short-term acquisition/rehabilitation loan of over $18 million, a 40-year permanent loan of $9.35 million and an almost $2 million subordinate loan to finance the purchase and renovation of the property. Additionally, CalHFA collaborated with the U.S. Department of Housing and Urban Development (HUD) to secure the waivers necessary to guarantee that all current residents could stay in their apartments.
The County of San Mateo, California, also restructured two existing loans and provided new rental subsidies for 31 of the Ocean View units. BRIDGE Housing Corporation accessed a low-income housing tax credit program to provide more equity, as well.
Lancaster Pollard Closes Loans for Communities in Colorado and Wisconsin
Lancaster Pollard recently announced the closing of a $34.7 million financing utilizing a USDA Direct Loan and USDA Guaranteed Loan for Eben Ezer Lutheran Care Center in Brush, Colorado, which provides the full continuum of senior care.
The USDA CF program enabled the provider to secure long-term fixed rate financing so it can maximize liquidity. The financing will enable Eben Ezer to refinance its outstanding debt at more favorable terms, and will also enable the new construction of a 54-unit assisted living building, 18- unit memory care neighborhood, two 28 bed skilled nursing neighborhoods, a new physical therapy area, new central services including laundry, kitchen, and central receiving facilities and demolition of a variety of structures. Rob McAdams led the transaction for Lancaster Pollard.
Lancaster Pollard also recently announced the closing of a $7.1 million refinance via the FHA Sec. 232/223(f) program for Christian Community Homes in Osceola, Wisconsin.
The non-profit organization, based in Hudson, Wisconsin, was looking to refinance the construction loan on its second campus after a successful refinancing of its first campus in 2014. The new FHA-insured structure enabled the building to refund its existing debt and fund an initial deposit of $120,000 to replacement reserves. Additionally, the refinancing generated over $96,000 in yearly debt service savings. Brad Competty led the transaction for Lancaster Pollard.
CBRE Arranges $33.3 Million Financing for Community in Alabama
CBRE National Senior Housing Vice Chairman Aron Will recently arranged financing on behalf of Dominion Partners, LLC and Property Investment Advisors for Somerby at St. Vincent’s One Nineteen, a 199-unit, Class-A independent living, assisted living and memory care community in Hoover, Alabama.
CBRE, via its Freddie Mac Seller Servicer direct lending program, secured a $33.3 million, seven-year Capped ARM loan with 36 months of interest only to refinance the community.
Dominion’s wholly owned subsidiary/management arm, Somerby Senior Living, will continue to operate the community.
Written by Mary Kate Nelson