Joshua Hausfeld closed a $31.9 million loan for the construction of NuVista Care at Wellington Green, a skilled nursing and assisted living center opening this May in Wellington, Florida. He secured the loan through the U.S. Department of Housing and Urban Development’s 232 LEAN program for healthcare facilities. Utilizing HUD mortgage insurance enabled the borrower to obtain a 40-year non-recourse loan with a 4.7% fixed interest rate. The loan also carries an interest-only construction period that converts to 40-year fully amortizing permanent financing.
Once completed, the 139,000 square-foot, state-of-the-art facility will house 120 skilled nursing beds and 52 assisted-living beds. Wellington Green is one of three new healthcare facilities being built by NuVista Healthcare Investors that seek to change healthcare delivery in long-term care. All three facilities, which are being developed under the NuVista Care Communities brand, will incorporate its exclusive integrated patient solutions, as well as unprecedented technological advancements including advanced electronic medical records systems. A first in the industry, Wellington Green’s records system will link with the adjacent Wellington Regional Medical Center, and enable a fully integrated wireless and virtually paperless environment, allowing for increased efficiency, reduced clinical errors and improved care.
“We see healthcare reform as a catalyst for change and innovation,” said Paul Walczak, a principal at NuVista Healthcare Investors. “If we’re really going to look at innovating healthcare, we need to look at it from a human perspective and invest the capital necessary to drive efficacy and efficiency. The goal of NuVista Care is to build an environment that can adapt to these constant changes in the healthcare market while delivering the highest quality patient care.”
The Wellington Green transaction was unique in that Hausfeld won the FHA’s approval to allow NuVista to begin construction while its loan application was still being considered. Typically, developers are only permitted to complete initial site and foundation work. Florida requires a Certificate of Need (CON) to add nursing homes beds in the state, and NuVista had to begin construction before its CON expired near the end of 2009.
“This was a unique and challenging project due to the complexity and innovation of the project and its resulting capital needs,” said Hausfeld. “We developed a strategy that worked for the project and worked closely with the HUD LEAN staff to implement the strategy and ultimately get to closing.”