Lancaster Pollard recently refinanced seniors-housing facilities in Kentucky and Indiana.
The Paragon of Madisonville is a 41-unit state-certified assisted living facility in Madisonville, Ken. The property was built through a HUD/FHA Sec. 232-insured loan in 2000 and refinanced in 2005 under the HUD/FHA Sec. 232/223(a)(7) program. To take advantage of the lower interest-rate environment, the owners engaged Lancaster Pollard to refinance the facility once again for $3.2 million. Paragon’s interest rate was reduced by 2.2 percentage points resulting in annual debt service savings of more than $39,000.
Lancaster Pollard refinanced three Indiana skilled-nursing facilities for $19.4 million. Using the HUD/FHA Sec. 232/223(a)(7) program, Lancaster Pollard was able refinance each property’s existing FHA mortgage down to well below 4 percent, resulting in combined annual savings of more than $161,000 for the owner.
Both the Kentucky and Indiana transactions were completed by Chris Blanda, a vice president with Lancaster Pollard in Columbus, Ohio, in late June.
In July, Lancaster Pollard closed 13 seniors housing transactions with a total deal amount of more than $110.8 million. The majority of the transactions were through the FHA Sec. 232/223(f) or FHA Sec. 232/223(a)(7) programs and for facilities in the Midwest. Also included in that total is a $16 million bridge loan for an assisted living facility in Florida.
In August, the firm closed an additional 13 seniors housing transactions with a total deal amount of more than $108.8 million. The FHA Sec. 232/223(f) program was used in the majority of the transactions and the facilities included skilled nursing, assisted living and affordable seniors housing and spanned the states of Ohio, Illinois, Maryland, Montana, Tennessee and Texas.
