Love Funding is among the top ranking HUD lenders in the nation. Specializing in multifamily and healthcare finance, our team is ready to assist you in obtaining financing to help meet your short- and long-term goals.
Love Funding’s Senior Director Leonard Lucas recently spoke with Seniors Housing Business Magazine (SHB) and gave his expert opinion on seniors housing finance. We’ve highlighted some of Len’s responses here. Click the link the below to read the full feature.
By Jeff Shaw
SHB: What do you consider to be your specialty within seniors housing, if any?
LL: We provide HUD-insured mortgages for age-restricted housing, assisted living/memory care and skilled nursing. Our loans finance new construction, substantial rehabilitation, and acquisitions, as well as traditional refinances.
We are also very active in the financing of low-income housing tax credit projects with a focus on age-restricted senior living. We are currently working with healthcare service providers with the goal of creating a model to finance affordable assisted living facilities. This is a part of the marketplace that is vastly underserved and in need of attention.
Our parent company is Midland States Bank. This relationship puts us in the unique position of being to leverage their balance sheet and offer bridge loans for properties that are not ready for HUD financing.
SHB: What was your seniors housing lending volume the past few years? If there has been a significant change year seniors-housing-business-q&a year, what was the reason?
LL: Love Funding has closed over $400 million in healthcare transactions over the past few years. One way in which our volume has changed significantly is in the type of transaction. In January 2015, Midland States Bank acquired Love Funding bringing balance sheet lending to our clients. While we previously only originated FHA transactions, since then we have originated over $100m in healthcare bridge to HUD transactions, including construction/mini-perms for assisted living. Midland continues to grow through acquisitions which in turn increases its appetite and capacity for bridge financing.
SHB: What does your ideal seniors housing development look like? For example, what part of the continuum of care does it include? How many units does it have?
LL: The ideal senior housing development is set on a campus that provides a full continuum of care from age-restricted housing to independent living, assisted living, memory care, skilled nursing and hospice. The older people get, the more of a challenge it is to move from one location to another. This applies to individuals and especially to couples. Couples do not decline in health at the same rate. It is important that they be able to live in a community that meets the healthcare demands of each while allowing them to be in close proximity to one another.