Love Funding closed a $6.8 million bridge loan for the construction of a new assisted living and memory care center under development in South Jordan, Utah. Our House of South Jordan will offer 62 beds in the new 42,000-square-foot facility being built by a team led by Giza Development LLC and which also includes Stout Construction and Primera Group. The facility will be operated by SAL Management Group LLC.
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. This is the second bridge loan Vanar has obtained for Giza Development, which needed bridge financing to start construction of Shadow Valley Assisted Living and Memory Care in Ogden, Utah last year.
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 construction/mini-perm financing for multifamily and healthcare development. To date, Love Funding has financed more than $153 million in bridge loans, with another $220 million in loans in the pipeline.
“Love Funding’s bridge loan platform was an incredible asset because it was able to get us to a secure loan before we were eligible for HUD’s refinancing timetable,” said Michael Wright, president of Giza Development. “Working with the professionals at Love Funding and MSB couldn’t have been easier or more efficient. They made closing this loan easy and this allowed us to focus on our core business, which is caring for our residents.”
Conventional bridge loans can be particularly useful to senior living developers who are looking to take advantage of long-term, low-rate, non-recourse loans offered through HUD. Bridge financing can help them start construction more quickly than with a HUD-insured loan and avoid having to pay Davis Bacon prevailing wages, significantly reducing project costs. As with the Shadow Valley project, the development team 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.
For more information contact James Vanar at (949) 215-1682.