Walker & Dunlop recently provided a $12.08 million loan under the U.S. Department of Housing and Urban Development’s Section 232/223(f) program for Select Senior Living at Coon Rapids, an assisted-living facility located in Coon Rapids, Minn.
The refinance loan was structured with a 35-year fully amortizing mortgage. The loan was underwritten to a 70.38 percent loan-to-value ratio with a 2.07x debt-service coverage ratio.
Select Senior Living participates in Minnesota’s Elderly Waiver program, whereby state Medicaid dollars are made available to eligible seniors. Walker & Dunlop structured the loan to accommodate changes to Minnesota Medicaid reimbursement regulations that were to be implemented at the time the loan was scheduled to close.
The underwriters at Walker & Dunlop obtained HUD approval by demonstrating the benefits the state Medicaid contract would continue to provide to the facility once those changes went into effect.
Select Senior Living offers 90 beds within 68 units and features assisted-living apartments and a floor dedicated entirely to memory care. Amenities within the condo-quality apartments vary by unit type and include features such as granite accents in foyers and on countertops, balconies, and two-sided fireplaces. Community amenities include separate dining rooms for memory-care and assisted-living residents, an activity center, media/theatre room, exercise facility, outdoor patio areas and more.
Walker & Dunlop vice president Carolyn McMullen originated the loan. Walker & Dunlop vice president of multi-family finance Joel Kaplan led the Walker & Dunlop team.
