Lancaster Pollard Consolidates Assisted Living Loans

by Jeff Shaw

BETHESDA, Md. — Lancaster Pollard has consolidated and refinanced multiple loans for Eden Homes, a four-community portfolio of assisted living facilities in Bethesda, into a single $5.7 million loan. The four communities are each in residential areas and designed to look like a single-family home.

Each of the four communities carried two loans—a bank loan and a small business administration loan. Ownership sought funding to expand its business and build additional facilities, but realized its financial capacity to do so was limited by the debt derived from its eight outstanding loans. It sought a financial solution that would refinance and consolidate the eight loans and create the opportunity for Eden Homes Group to expand and pursue new construction projects.

Lancaster Pollard recommended a financial solution that would consolidate the eight loans under one new loan insured by the FHA Sec. 232/223(f) program. As the four separate homes all utilized shared services, were covered by the same insurance policies and effectively operated as one property, Lancaster Pollard was able to refinance the scattered sites under one loan.

The result was a $5.7 million loan that is nonrecourse and features a 35-year term. The refinance also results in significant annual debt service savings and approximately $150,000 for repairs and improvements such as new elevators and generators.

Tom Gale, senior vice president based out of Lancaster Pollard’s Philadelphia office, led the transaction. 

You may also like