Washington, DC – Nov. 22, 2011 – Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of an $8.91 million construction-to-permanent loan for Orchard Park of Odessa, a 97-bed assisted living and memory care center under development in Odessa, Texas.
Love Funding secured the loan through the U.S. Department of Housing and Urban Development’s Section 232 LEAN program for new construction of healthcare facilities. Using the program enabled the property’s owners – McFarlin Group and Stroud Development – to lock in a low fixed interest rate for the duration of the construction period and 40-year permanent loan term.
The 69,500 square-foot facility is scheduled to open in late 2012 and once completed will house 57 assisted living beds and 40 memory care beds. Orchard Park of Odessa is the third construction project that Love Funding has helped McFarlin Group finance through HUD’s 232 program. He arranged $9.22 million in financing for Orchard Park of Murphy in September of this year, and he secured $11.5 million in financing for Orchard Park of McKinney in May 2010.
“It has been a pleasure working with the team at Love Funding,” said McFarlin Group Principal Dustin Pridmore. “Navigating the HUD process can be overwhelming and Love Funding has proven to be a valuable and experienced partner.”
In both of the most recent transactions, Love Funding made use of HUD’s new modified firm application for new construction projects, which allows borrowers to skip the former pre-application process and submit architectural plans and other specifications after the initial filing and approval from HUD. The modified firm application is one way the agency is expediting approval times amid a surge in interest in its loan insurance programs.