Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $12.9 million FHA loan to take out bridge financing used for the refinance of The Woodlands of Arnold, an assisted living, memory care and skilled nursing complex in Arnold, Missouri.
Love Funding Senior Director Eric R. Forguson obtained the bridge loan from Love Funding’s parent company, Midland States Bank, in April and then converted to the permanent U.S. Department of Housing and Urban Development (HUD) loan structure. The new loan, secured through HUD’s Section 232/223(f) program, refinanced the bridge loan and provided low-rate, non-recourse financing for a 35-year term.
“Love Funding’s ability to provide the short-term bridge loan through Midland and working with HUD created a great opportunity for our client. The client has two other healthcare facilities financed with Love Funding and felt that the bridge loan to HUD option was the most efficient way to achieve their current and long- term financing goals for the property,” commented Forguson.
The short-term bridge loan was a mechanism to complete a cash-out refinance: Midland was able to fund the bridge transaction for the borrower and Love Funding then immediately applied to HUD for the permanent mortgage. In this transaction, debt seasoning was not required by HUD as the LTV was below 70%, more than half of the bridge loan proceeds were used for project purposes, and the property had exhibited stabilized cash flow over a three-year period, which was supported by a third-party appraisal.
The Woodlands of Arnold is part of a larger healthcare campus, offering a full continuum of care including independent living, assisted living, memory care and skilled nursing. The subject credit facility included financing for a 178-bed skilled nursing facility and a 24-unit assisted living facility that is converting to a memory care facility. The city of Arnold is the largest city in Jefferson County and located just 15 miles southwest of downtown St. Louis.
For more information, contact Eric Forguson at email@example.com or 314.512.7955.