Lancaster Pollard Arranges $11.2M HUD Refinancing for 100-Unit Community in Illinois

by Jeff Shaw

MCHENRY, Ill. — Lancaster Pollard has arranged an $11.2 million HUD refinancing for Heritage Woods of McHenry, a 100-unit supportive living facility in McHenry, located between Chicago and Milwaukee.

Supportive living is an Illinois program that allows government funding of assisted living services that are usually private-pay.

The owners sought to reduce interest rates on the original tax-exempt bonds used for construction of the two-story community in 2007. The new FHA-insured mortgage provides a non-recourse loan with a fixed rate and 35-year amortization that “nearly cut the debt cost of capital in half,” according to Lancaster Pollard.

Brett Murphy led the transaction for Lancaster Pollard.

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