Dealmaker of the Day

Love Funding, Washington, D.C., refinanced apartment and assisted living communities in Massachusetts and Ohio totaling $15 million.

The firm closed a $6.56 million loan through HUD's 223(a)(7) loan program for borrower Snow Asset Management, Watermill, N.Y., to refinance the Brandywine at Amherst Apartments, a 180-unit Amherst, Mass., rental community. The 223(a)(7) refinancing program for existing FHA-insured apartments allows an additional 12 years on the remaining term of the existing loan, as long as it does not exceed the original term.

Laura Saull-Smith, senior director at Love Funding, said the refinancing let Snow "lock in a low fixed interest rate and extend the loan back to its original 35-year term, generating more than $90,000 in annual debt service savings." Saull-Smith said Love Funding refinanced the property for Snow twice before.

Love Funding's Columbus, Ohio office also closed a $5 million loan through HUD's 232/223(f) program for borrower Vrable Healthcare to refinance Heritage Manor Skilled Nursing and Rehabilitation Center in Minster, Ohio, a 61-unit nursing facility.

"Using the [232/223(f)] program enabled [Vrable] to lock in a low fixed interest rate over a 33-year term, generating approximately $215,000 of additional cash flow each year, plus $215,000 for repairs and replacement reserves," said Robert Smallwood, Love Funding senior director. 

HUD's 232/223(f) loan insurance program allows for the purchase or refinance of three-plus-year-old senior housing properties that have not been rehabilitated in the last three years.

Written by Michael Tucker via MBA NewsLink

 

Related Posts

Lutz Care & Rehabilitation Center January 11 111 2011
Village at West Point February 21 221 2011
Clock Tower Apartments January 11 111 2012
NuVista Care January 11 111 2012
Dealmaker of the Day March 8 308 2012
Dealmaker of the Day March 8 308 2012
Dealmaker of the Day March 8 308 2012
Dealmaker of the Day March 8 308 2012
Dealmaker of the Day March 8 308 2012
Dealmaker of the Day March 8 308 2012