Greystone has provided a $7.3 million HUD-insured loan to refinance a 78-bed assisted living community in Great Falls, Montana. The financing was originated by Scott Thurman and Leor Dimant of Greystone on behalf of Inspired Healthcare Capital, a repeat client, who acquired the property in March 2020.
The $7,360,000 HUD-insured Section 223(f) financing carries a 35-year term and 35-year amortization, along with a low, fixed interest rate, and is a permanent take-out of short-term bridge financing provided by Greystone. Built in 2001, The Lodge Senior Living Community offers full-service amenities for its residents include dining, transportation, laundry, housekeeping, and events and entertainment. The property is located within two miles of multiple major hospitals and healthcare systems, including Great Falls Clinic Hospital and Surgery Center and Benefits Health System – East Campus.
Currently, the facility is occupied and configured with 70 beds in 70 units ranging from studio, one- and two-bedrooms, and with proceeds from the HUD financing, some of the property’s two-bedroom units will be converted into studios to accommodate high demand for that unit type.
“The bridge-to-HUD process for healthcare property investors eases many of the challenges related to timing with acquisitions and FHA financing, and Greystone’s seamless process sets up the borrower for a permanent, 35-year loan with a short-term lending cushion,” said Mr. Thurman. “The higher proceeds afforded by the FHA financing is also beneficial for borrowers who want to make capital expenditures and invest in the property for the long-term.”