Lument Arranges $22.8M in Bond Financing for Construction of The Retreat at Indian Land in South Carolina

by Jeff Shaw

INDIAN LAND, S.C. — OREC Securities LLC, doing business as Lument Securities, has arranged a $22.8 million bond placement to fund the construction of The Retreat at Indian Land, a seniors housing community in Indian Land.

Located along the North Carolina-South Carolina border near Charlotte, the project will feature 87 units of independent living, assisted living, memory care and respite care.

The borrower is Whitehall Senior Living, which is developing the property. The operator will be Phoenix Senior Living.

Kevin Oakley, director for Lument in the Southeast, led the finance transaction.

“The 142(d) program was an ideal solution for the new construction of The Retreat at Indian Land, as it allows the borrower to finance construction with tax-exempt bonds and enjoy the benefits of pricing and structure in that market,” says Oakley.

Section 142(d) of the U.S. tax code allows for-profit developers to use the tax-exempt bond market to issue long-term, non-recourse bonds at competitive high-yield interest rates for the new construction or substantial renovation of seniors housing and care communities that meet certain income requirements.

“The higher-leverage, fixed-rate, non-recourse financing will allow the borrower, Whitehall Senior Living, to stretch equity for use in other projects and preserve their credit strength for guarantees on future debt,” adds Oakley.

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