Eric Forguson of Love Funding helped the owner of a senior care campus in Arnold, Missouri (St. Louis MSA) take out bridge debt on the property and replace it with a $12.9 million HUD refinance. Built in phases over the last 30 years, most recently adding a 52-unit assisted living building in 2019, the community features a mix of independent living, assisted living, memory care and skilled nursing services, with 202 units/beds total. Its operations were strong, and it produced stabilized cash flow over a three-year period.
Mr. Forguson had originally secured a short-term bridge loan in April from Love Funding’s parent company, Midland States Bank. More than half of the loan’s proceeds were used for project purposes and for the borrower to cash out. Love then immediately applied to HUD for the permanent mortgage. Since the loan-to-value would have been below 70%, there was no debt seasoning requirement, allowing the borrower to obtain a $12.9 million loan with a low rate and 35-year term.
