BRAINTREE, Mass. — Lancaster Pollard has arranged a $14.2 million refinancing for Alliance Health at Braintree, a 101-bed skilled nursing facility in the Boston suburb of Braintree.
The borrower is Alliance Health & Human Services. The refinancing was completed through the FHA Section 232/223(f) program, and was the fifth FHA financing Alliance has completed with Lancaster Pollard.
The successful refinancing repositioned the asset and locked in a fixed interest rate, without the covenants of the borrower's previous debt structure. Loan proceeds were also used to reimburse the borrower for prior capital expenditures.
In addition to refinancing the existing debt, the loan provided funding to allow Alliance to file a Determination of Need (DON) with the state in order to invest approximately $3 million to renovate the facility. By following the DON process, the state will reimburse the cost of the renovation through a future increase in the Medicaid rate.
Aaron Becker led the transaction for Lancaster Pollard.