The owner of two assisted living communities wasn’t in the mood to settle for second-best when it worked with Ziegler to refinance its existing permanent financing and receive a lower interest rate. The two communities are located in Redding, California, and include a stand-alone assisted living community with 60 units and an 85-unit assisted living/memory care community.
Together, they had approximately $14.1 million in outstanding HUD debt originally financing by another HUD lender in 2014. However, the interest rate was in the mid-4s, which the borrower believed they could improve upon. Ziegler stepped in to arrange $14.7 million if HUD financing, locking in a lower interest rate and extending the maturities of the loans to a full 35 years. The transaction also provides increased annual income distribution to the ownership group, which surely made for a happy client.
