REDDING, Calif. — Ziegler, a specialty investment bank, has closed $14.7 million in HUD refinancing loans for two seniors housing communities in Redding, located approximately midway between Sacramento and the Oregon border.
The properties are Sierra Oaks of Redding, an 85-unit assisted living and memory care campus, and Oakdale Heights of Redding, a 60-unit assisted living facility.
The communities had approximately $14.1 million in outstanding Section 232/223(f) HUD mortgages that were originally financed in 2014 at interest rates in the mid-4s by another HUD lender. Ziegler recommended refinancing the existing debt under HUD’s Section 232/223(a)(7) program to allow both assets to lower their debt service by locking low, long-term fixed interest rates while also extending the maturities of the loans to a full 35 years.
The refinancings recapitalized the facilities and provided the opportunity for increased annual income distributions to the ownership group.