Lument Closes $12.7 Million Refinance for Seniors Housing Community in Indiana
Lument recently announced the closing of a $12.7 million FHA Sec. 232 note modification to refinance the existing indebtedness at Park Place Senior Living, a 172-unit seniors housing community in Fort Wayne, Indiana. David Boitano, managing director for Lument based in Seattle, led the transaction.
Park Place Senior Living consists of 158 assisted living (AL) beds in 132 units and 40 dementia care beds/units. Park Place is an active adult community operated by affiliates of Traditions Management and consists of approximately two dozen communities in Indiana, Michigan, Ohio, Pennsylvania, and Kentucky. The facility owner is Sabra Health Care REIT, Inc., a Maryland-based REIT that owns and invests in real estate serving the healthcare industry throughout the U.S. and Canada.
“The FHA seniors housing note modification program proved to be an ideal solution that allowed us to reduce Sabra’s interest rate and improve cash flows with minimal time and financial investment,” said Lument’s Boitano.
Park Place was originally constructed in 2009 with FHA funding. FHA note modifications, which are only available to the lender that currently services the loan, allow the borrower to maintain the existing FHA loan and adjust it to lower the rate and monthly payment. Other terms, such as the original 30-year term and maturity date, remain unchanged.