Walker & Dunlop Closes Unique $17.3 Million Construction Loan for Affordable Assisted Living Facility
BETHESDA, MD-Walker & Dunlop, Inc. announced today that it structured a $17,289,000 loan for Oasis at 56th, a 124-unit affordable assisted living facility located in Indianapolis, Indiana. The transaction is one of few assisted living facilities in the country financed with a Low-Income Tax Credit (LIHTC) from the Department of Housing and Urban Development (HUD).
Jeff Lawrence and Matt Baptiste led the Walker & Dunlop team in structuring the financing for the developer, Integral Community Development, a strong, repeat client which has extensive HUD experience and owns additional senior housing facilities in the local area.
“As baby boomers continue to age, communities will have to figure out how to navigate the challenge of offering housing and care to our most vulnerable citizens. Integral Community Development (a subsidiary of The Integral Group LLC) is leading the way in this endeavor and the Oasis concept is truly an innovative approach to this pressing need,” said Lawrence.
“Working with our partners at HUD, we were able to tailor the 232 program to optimize the use of LIHTCs, along with public and private sources of capital to assist in the development of the project that we believe will be a model for affordable assisted living,” he added.
Through HUD’s New Construction program, the team provided a 40-year loan with a fixed rate, exceptional terms, and an interest-only construction period. The team also coordinated the time-sensitive loan closing with the developer’s LIHTC application to ensure that 85 percent of the seniors housing facility’s units remain affordable at 60 percent area median income.
“The team at Walker & Dunlop proved to be a wonderful partner and brought a creative solution to the table for Oasis at 56th,” stated Vicki Lundy Wilbon, president at Integral Community Development. She added that Integral is “confident that Oasis will prove to be an important part of the Indianapolis community.”
Oasis at 56th will be situated on 3.15 acres, located at 4940 West 56th Street. The neighborhood enjoys quick access to major thoroughfares, Interstate 65 and 465, and is just 15 minutes northwest of downtown Indianapolis. Within the property’s local area are amenities and attractions that include golf clubs, public parks, the Eagle Creek Reservoir, Indianapolis Museum of Art, several grocery stores, a shopping center, and the Indianapolis International Airport.
A sister property, Oasis at 30th, is located 20 minutes away from the facility, and both properties are in close proximity to well-regarded hospitals and medical facilities.
Once complete in early 2019, Oasis at 56th will be the only facility in the immediate neighborhood catering to low-income seniors in an assisted living property. Consisting of one four-story building, the property will offer 73 one-bedroom and 51 studios.
Each of the assisted living units will be fully and independently functional, featuring a living area, accessible bathrooms, and kitchenettes with cabinets, sink, refrigerator, and a microwave. Community amenities will include a commercial kitchen with dining area, resident and personal care rooms, laundry facilities, exercise room, café, facility-owned van for access to medical appointments, and fitness and wellness centers.
Residents will have access to services including 24-hour staff, three daily meals, and assistance with the activities of daily living.
Walker & Dunlop is the largest non-bank affordable lender and is one of the largest multifamily lenders in the country1. In 2017, Walker & Dunlop closed over $1.4 billion in HUD origination volume, a 54 percent increase over 2016. Learn more about Walker & Dunlop’s ability to lend on senior living and affordable properties: