This transaction is one of the first new construction skilled nursing loans to close under HUD’s LEAN program
Love Funding, a national mortgage-banking firm, is pleased to announce that Joshua Hausfeld, Vice President – Loan Originator, in Love Funding’s Washington D.C. office, secured financing for a $13,984,000 new construction loan for Lutz Care and Rehabilitation Center, a skilled nursing facility located in Lutz, Fla. This is one of the first new construction skilled nursing transactions to close under HUD’s LEAN program for healthcare facilities and was also the first transaction to receive early start authorization from HUD and close under such authorization.
Hausfeld secured the loan for the borrower, 19091 RE Investments, LLC, through the HUD 232 loan program. By utilizing FHA financing, he was able to lock in a 5.38 percent fixed interest rate with a 40-year amortization plus an interest-only construction period. The team at Love Funding was able to help the borrower navigate through the HUD LEAN program at a time when the program was transitioning from Multifamily Accelerated Processing (MAP) to LEAN. The borrower was able to secure one of the first Pre-Application Market Acceptance approvals issued through the LEAN program and received the first early start authorization, which allowed the borrower to complete the required site, foundation and utility work for the project prior to closing. In addition, due to the significant delays with the LEAN processing timeframes, Love Funding also obtained a second early start authorization that allowed the borrower to complete additional construction work above the site and foundation work before the closing date. Love Funding also arranged for several meetings with key members of the Office of Insured Healthcare Facilities (OIHCF) and LEAN in order for all parties to get comfortable with the transaction involving bringing new state-of-the-art skilled nursing beds to market.
Once complete, the 55,227-square-foot Lutz Care and Rehabilitation Center will consist of 120 beds, 68 units and will be a leading example of how advancements in technology can be used to enhance healthcare delivery and improve patient care. The facility will feature several key innovative technologies, including an advanced electronic medical records system that will allow the it to operate in a virtually paperless and wireless environment. The construction will focus on increasing energy efficiency to confront rising energy costs, reducing environmental footprints and increasing operational efficiencies. The facility will be a technological model for skilled nursing facilities moving forward.
“We appreciate the efforts by Love Funding to secure this loan for 19091 RE Investments, LLC, and our state-of-the-art facility in north Tampa,” said Paul Walczak, Chief Executive Officer of Palm Health Partners. “Lutz Care and Rehabilitation will offer a unique Integrated Patient Care Solutions model that will offer the most technologically advanced post-acute care and rehabilitation services to the Tampa Bay area. Mr. Hausfeld and the team at Love Funding were instrumental in helping us navigate through the new LEAN process and brought creative solutions to the table when confronted with several unique challenges. We look forward to several more successful closings with HUD and Love Funding and value the collaborative partnership we have established with both organizations.”