Lancaster Pollard financed two separate new construction/expansion projects with the FHA Sec. 232/241(a) mortgage insurance program. Both transactions were led by Kass Matt, managing director with the firm representing Ohio.
Located in Sylvania, Ohio, Oakleaf Village is a 145-unit assisted-living facility owned by The Wallick Companies. Built in 1987, Oakleaf underwent significant upgrades in the past decade and enjoys strong occupancy and operating performance. Wallick sought funding for the construction and permanent financing for the addition of a separate building, to be called The Grove, that would contain 40 memory care units.
Since Oakleaf already had an FHA Sec. 232 loan from a previous refinance, Lancaster Pollard recommended using the FHA Sec. 232/241(a) program to finance the new construction.
Once complete, The Grove at Oakleaf Village will contain four wings with 10 memory care units in each. The $5.6 million loan insured by the FHA Sec. 232/241(a) program will fund the construction costs at a low interest rate and a 40-year term.
The second transaction involved Mason Christian Village, one of two five-Star rated continuing care retirement communities owned and operated by the Christian Benevolent Association. Located in Mason, Ohio, Mason Christian Village wanted to add an expansion wing that would result in 20 new private occupancy skilled nursing units to help modernize the unit mix.
Lancaster Pollard obtained a $3.5 million loan that will provide a fixed-rate, 40-year term and low cost of capital for the project. The planned expansion will consist of a 14,336-square-foot addition featuring 20 new private occupancy skilled nursing units, a distinct entrance with canopy, a dining hall, a new sitting room, a 2,300-square-foot rehab gym and various other site improvements.
