PEORIA, AZ—Once constructed, Agua Fria Senior Living will have 90 units, with 32 units dedicated for assisted living and 58 for memory care. Using a $15-million FHA bridge loan for the construction and mini-perm financing enabled the development team, Agua Fria Senior Living LLC, to break ground quickly. It will also pave the way 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 US 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.
Hartman and Cunningham tell GlobeSt.com: “This project fell outside of MSB's regional footprint but was made possible by the addition of Love Funding and its national reach. Thanks to the new bridge loan program, the client was able to get shovels in the ground quickly and still be in a position to obtain long-term, non-recourse financing in just a few years' time.”
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 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, IA. Another bridge loan, originated by Love Funding's 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.
PEORIA, AZ—Once constructed, Agua Fria Senior Living will have 90 units, with 32 units dedicated for assisted living and 58 for memory care. Using a $15-million FHA bridge loan for the construction and mini-perm financing enabled the development team, Agua Fria Senior Living LLC, to break ground quickly. It will also pave the way 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 US 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.
Hartman and Cunningham tell GlobeSt.com: “This project fell outside of MSB's regional footprint but was made possible by the addition of Love Funding and its national reach. Thanks to the new bridge loan program, the client was able to get shovels in the ground quickly and still be in a position to obtain long-term, non-recourse financing in just a few years' time.”
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 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, IA. Another bridge loan, originated by Love Funding's 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.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
