WASHINGTON, DC - Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $15 million FHA bridge loan for the construction and mini-perm financing of Agua Fria Senior Living, a proposed senior care facility in Peoria, Arizona.
Once constructed, the new private pay facility will have 90 units, with 32 units dedicated for assisted living and 58 for memory care. Using the FHA bridge loan enabled the development team, Agua Fria Senior Living LLC, to break ground quickly, and will pave the way for them to obtain a permanent non-recourse loan at a low, fixed long-term rate after construction is completed and the project is stabilized. The loan was originated by Love Funding Senior Director Robyn Cunningham and Director Adrian Hartman, with funding provided by Midland States Bank, the parent company of Love Funding.
Love Funding introduced the bridge loan platform in May 2015 as a means for providing interim funding support for acquisition and refinancing applications on U.S. Department of Housing and Urban Development multifamily and healthcare loans. The platform was later expanded to include tax credit equity bridge loans, and conventional financing for multifamily and healthcare new construction.
The closing of the Agua Fria bridge loan caps a formative first year for the program, with nearly $60 million in bridge loans already financed and more than $220 million in loans in the pipeline. As anticipated, borrowers have tapped the program for a wide variety of reasons. For instance, a recent $2.15 million bridge loan secured by Cunningham and Hartman was used to refinance debt that was about to expire for Bella Vista Apartments, a 40-unit market-rate apartment community in Nevada, Iowa. Another $1.2 million bridge loan, originated by Love Funding Regional Director Bruce Gerhart, was used by the owners of Montclare Senior Living Facility in Chicago to bridge the low income housing tax credits and comply with the HUD required equity pay-in schedule.
“Multifamily and healthcare owners often face timing and other constraints that don’t align with HUD’s application process,” said Jonathan Camps, senior vice president of business development and head of the bridge loan platform. “The bridge loan platform buys them the time they need to get shovels in the ground, address expiring debt or purchase contracts, and otherwise stay ahead of the market.”
Love Funding’s program provides bridge financing of up to three years for qualified borrowers seeking long-term HUD financing. Suitable multifamily projects include market-rate, affordable and age-restricted housing, while healthcare projects include skilled nursing, assisted living and memory care facilities. The program offers terms ranging from six months to three years, amortizations up to 25 years, and competitive pricing. Loan-to-value requirements vary by property type.
About Love Funding: Love Funding is an experienced FHA lender serving clients across the country from its headquarters in Washington D.C. and offices nationwide. The company offers financing programs for market-rate, affordable and senior housing; healthcare facilities and hospitals. Love Funding is a subsidiary of Midland States Bank, a locally owned and operated community bank headquartered in Effingham, Illinois. To learn more please visit our website and join us on Facebook and Twitter.