New York, NY – February 7, 2024 – Lument Securities, LLC today announced it has facilitated the closing of $70.2 million in tax-exempt bonds that will fund the construction of a new replacement facility for Harrison County Community Hospital in Bethany, Missouri. Adam Walter, associate director at Lument based in Overland Park, Kansas, led the transaction.
The financing will fund the construction of a 14-bed, roughly 83,000 square-foot facility for the hospital, its clinics, and a maintenance and storage building to replace the existing 45,000 square-foot hospital, built in 1955. The new facility will offer additional patient rooms, a multi-specialty clinic with 12 exam rooms and telehealth capabilities, and operating suites that can support future robotics.
“Harrison County Community Hospital is grateful to Lument for their work with us on financing our new, expanded facility,” said Tina Gillespie, CEO of Harrison County Community Hospital. “We are dedicated to providing best-in-class care for the city of Bethany and our surrounding community, and this world-class facility will usher in a new standard of care for our patients as well as enable us to leverage new medical technologies.”
The $70.2 million financing includes $57.5 million in construction financing from short-term tax-exempt bonds and $12.7 million in construction to permanent tax-exempt bonds. Of the total amount financed, $57.5 million will be refinanced with a USDA direct loan when the project is complete to serve as the primary permanent financing of the project, which will carry a 35-year term and fixed interest rate.
“We worked closely with Lument to structure this financing to best support the development and future of our new hospital. Amid the current environment of historic interest rate increases and rising construction costs, their support was invaluable to securing an optimal financing plan,” said Doug Brandt, CFO of Harrison County Community Hospital.
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and 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, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit https://www.lument.com.