Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $4.76 million loan refinancing for Olmsted Manor Care Center, a 74-bed skilled nursing facility in North Olmsted, Ohio.
Bruce Gerhart and Robert Smallwood of Love Funding’s Cleveland office secured the loans through the U.S. Department of Housing and Urban Development’s 232/223(a)(7) LEAN loan program, which enables streamlined refinancing of mortgage debt previously insured by the agency.
Love Funding was able to manage the timing of the transaction to reduce the impact of a prepayment penalty on the existing debt, dropping it from 9 percent to 5 percent, and they cut the monthly replacement reserve deposit by more than half after extending the loan back to its original 30-year term. Combined with locking in a significantly lower interest rate, the moves will save the borrower more than $120,000 annually over the next 10 years.
Last month, Gerhart and Smallwood teamed up on the refinancing of five loans totaling $19.9 million for a portfolio of assisted living facilities in Michigan.