ROLLING MEADOWS, Ill. — Greystone has provided a $16.8 million HUD LEAN 232/223(f) green loan to refinance a 102-unit supportive living facility in Rolling Meadows, approximately 25 miles northwest of Chicago.
Plum Creek at Rolling Meadows is a three-story facility on 1.46 acres, which was constructed in 1986 as a hotel property and converted to a supportive living facility in 2006. The Supportive Living program in Illinois is an alternative to nursing home care for low-income older persons requiring mid-range care needs as opposed to skilled nursing.
With the 35-year self-amortizing refinancing, the owner committed to implementing green improvements that will result in an estimated 15 percent in energy savings and 10 percent in water savings annually, amounting to projected savings of over $20,000 per year.
Adam Lipkin and Michael Zukerman of Greystone originated the loan, with Brent Connell of Geneva Capital acting as correspondent on the transaction.
Currently, the new HUD-insured green seniors housing program can cut closing costs by 75 basis points and reduce the interest rate by almost 50 basis points. This leads to a substantial decrease in annual financing costs and enables a significantly larger loan than HUD-insured financing without the green benefits.
“HUD’s new green financing program for seniors housing is an excellent option to reduce debt service by making environmentally friendly improvements, all the while benefiting from the long-standing advantages of a non-recourse FHA-insured loan — longer loan terms and amortizations, greater proceeds, and lower interest rates overall,” says Lipkin.