Typically, you see assisted living communities number between 50 and 100 units, and only rarely over 150 units. Those large facilities are usually reserved for independent living. But a 200-unit assisted living community on Long Island in Lake Ronkonkoma, New York recently went through HUD to refinance its variable-rate bank debt. Ken Gould of Lancaster Pollard arranged a 30-year HUD loan for the community, which also enabled it to set aside a large initial deposit on its replacement reserves while still keeping the loan-to-value low. That reduces the community’s annual contribution and improves its debt service coverage.
