New York, NY — March 30, 2022 — Lument announced the closing of an $18.9 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Sec. 223(a)(7) refinance for The Guilford House, a 96-bed assisted living (AL) and skilled nursing facility (SNF) in Guilford, Connecticut. The successful closing refinances a blended-rate loan from 2019 provided by Lument to fund an expansion of AL units and services. Aaron Becker, head of seniors housing and healthcare production for Lument, led the transaction.
“This refinance marks the culmination of a successfully implemented plan that expanded the community’s scope of services and positions it for continued long-term success,” said Becker. “The Guilford House is one of the premier senior housing and care communities in Connecticut, and we were thrilled to help them generate substantial annual savings through this agency refinance.” Apostrophe
The Guilford House is an individually owned and operated facility managed by the Moffie family, a repeat Lument client with decades of experience in the senior living industry. The Moffies acquired the facility in 2002, when the original building was a superannuated 60-bed SNF that required significant renovation and new construction. An FHA loan in 2007 spurred the facility’s renewal and emergence as a 75-bed SNF specializing in short-term rehabilitation. In 2019, the FHA program was used again to fund the addition of 21 AL units to the existing building.
The $18.9 million FHA Sec. 223(a)(7) loan provided by Lument replaces existing debt with a reduced interest rate and mortgage insurance premium (MIP), and provides approximately $110,000 in annual debt service savings. To ensure debt service savings were maximized, Lument successfully obtained a 40-month term extension on the loan.
The Guilford House has been nominated for the Eli Pick Award by the American College of Health Care Administrators (ACHCA), a recognition of distinction given to less than 3% of facilities nationwide, and consistently generates the highest quality metrics in the Yale New Haven Hospital service area.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.