New York, NY — Lument recently closed a $45.9 million FHA Sec. 232/223(a)(7) loan to refinance Tockwotton on the Waterfront, a 156-unit seniors housing and care community in East Providence, Rhode Island. Senior Managing Director Aaron Becker led the transaction for Lument.

“By leveraging our FHA expertise, we were able to significantly lower Tockwotton’s interest rate to generate nearly $250,000 in annual debt service savings, augmenting the $1.1 million in savings initially obtained when we helped with the prior FHA refinance in 2016,” said Becker. “The additional cash flow freed up by this transaction will allow Tockwotton to continue their mission of serving residents as a nonprofit company.”

The FHA 223(a)(7) loan refinances an existing FHA 232/223(f) loan with a low, fixed interest rate and 35-year term. In addition to reducing debt service payments, the successful closing funds replacement reserves that will ensure the long-term viability of the community.

In the wake of property performance challenges following the pandemic, Tockwotton has steadily improved its occupancy rate over the past year, with the assisted living component rising nearly 15% since May of 2021. When averaged with the current 100% occupancy rate for the skilled nursing units, Tockwotton’s overall occupancy is 86.5%.

Tockwotton consists of 52 skilled nursing beds, 73 assisted living units, and 31 memory care units. It is independently owned and operated by nonprofit Tockwotton Home, Inc.

About Lument
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 banking, and investment management solutions. 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.