Love Funding announced the closing of a $9.22 million loan refinancing for Allegany Health Nursing and Rehabilitation Center.
Love Funding senior director Laura Saull-Smith of the Washington office secured the loan through the U.S. Department of Housing and Urban Development’s 232/223(f) loan program. Using the program enabled Saull-Smith to lock in a low fixed interest rate over a 35-year term.
HUD’s 232/223(f) loan insurance program allows for the purchase or refinance of senior housing properties that are at least three years old and have not undergone any substantial rehabilitation in the last three years.
The subject property is owned by Allegany Healthcare Group LLC and operated by Mid-Atlantic of Cumberland LLC.
In Amherst, Massachusetts, Love Funding closed a $6.56 million loan refinancing for Brandywine at Amherst Apartments, a 180-unit apartment complex. Saull-Smith secured the loan through the U.S. Department of Housing and Urban Development’s 223(a)(7) loan program. Using the program enabled Saull-Smith to lock in a low fixed interest rate and extend the loan back to its original 35-year term, generating more than $90,000 of annual debt service savings.
Brandywine consists of 60 one-bedroom units and 120 two-bedroom units. The complex was built in 1973 and has been refinanced by Love Funding twice before to secure a lower interest rate.
“We had such a great experience with Love Funding in the past, and we really benefited from coming back once again with essentially the same team in place,” said Erica Arbron, president of Snow Asset Management Inc. “It really couldn’t have gone any better.”
HUD’s 223(a)(7) program, which covers the refinancing of existing FHA-insured multifamily rental properties, allows up to 12 years to be added to the remaining term on existing HUD-insured loans, as long as it does not exceed the original term.