Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $4.92 million loan for the acquisition of Graceland at Garden Ridge, a 46-bed assisted living and memory care center in Garden Ridge, Texas.
Love Funding Senior Director Leonard A. Lucas of the Boston office secured the loan for the buyer, Cara Graceland LLC, through the U.S. Department of Housing and Urban Development’s Section 232/223(f) LEAN loan program for healthcare facilities.
During the processing of the loan application, HUD exhausted its loan commitment authority from Congress, a development that prevented the agency from issuing a firm commitment, which would allow the borrower to proceed to closing. Love Funding was able to offer the borrower bridge financing against its own balance sheet to keep the acquisition on track and prevent the original purchase and sale agreement from expiring.
“Had the purchase and sale agreement expired, the borrower would have lost his deposit and all costs associated with the transaction,” said Lucas, who has closed more than $200 million in HUD financing multifamily and healthcare transactions year-to-date. “We were in a position to step up and prevent that from happening, and the borrower was extremely appreciative of our support.”
Between the apparent exhaustion of HUD’s commitment authority in July and the funding of the bridge loan last month, the agency recouped some of its previously used commitment authority and was able to issue a firm commitment, allowing the closing of the loan through the 232/223(f) program. The HUD insured closing date was set prior to the government shutdown, which allowed the closing to take place during the shutdown itself.
For more information, contact Leonard Lucas at (617) 638-0055.