Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $6.63 million bridge loan for the construction of a new assisted living and memory care center in Ogden, Utah.
Shadow Valley Assisted Living and Memory Care, which will offer 62 beds once construction is completed, is being developed by Giza Development of Bountiful, Utah.The bridge financing was secured by Love Funding Senior Director James Vanar of the Los Angeles office, with funding provided by Midland States Bank, the parent company of Love Funding.
Love Funding introduced the bridge loan platform in May 2015 as a means for providing interim funding support for acquisition and refinancing applications on U.S. Department of Housing and Urban Development (HUD) multifamily and healthcare loans. The platform was later expanded to include tax credit equity bridge loans, and conventional financing for multifamily and healthcare new construction. To date, Love Funding has financed more than $65 million in bridge loans, with another $300 million in loans in the pipeline.
In the case of Shadow Valley, conventional bridge financing enabled the development team to start construction more quickly than with a HUD-insured loan and avoid having to pay Davis Bacon prevailing wages, significantly reducing the cost of the project. Giza Development plans to wait the required three years of seasoning before taking out the debt with a permanent loan obtained through the HUD 232/223(f) loan insurance program.
“Love Funding’s bridge loan platform was an incredible asset because it got us under construction much faster than more traditional HUD financing scenarios,” said Giza Development President Michael Wright. “Most importantly, the bridge loan allowed us to get residents into our facilities quickly. And working with James and the other professionals at Love Funding and Midland States Bank couldn’t have been easier or more efficient. We knew we had a great project, but their thorough, expert review gave us even more confidence in what we were building.”
For more information contact James Vanar at (949) 215-1682.