New York, NY — March 9, 2023 — Lument today announced the closing of a $15 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Sec. 232/223(f) loan to refinance Alliance Health at West Acres, a 130-bed skilled nursing facility (SNF) in Brockton, Massachusetts. Aaron Becker, head of seniors housing and healthcare production at Lument, led the transaction.
“Working with Alliance Health and Human Services, a premier owner and operator whom we have collaborated with on over ten transactions, is always a pleasure,” said Becker. “This successful closing positions Alliance well, as it replaces recourse debt with non-recourse, fixed-rate debt, and frees cash from a collateral reserve fund to help the nonprofit organization support its mission of providing exceptional personalized nursing and rehabilitation care.”
Alliance Health owns and operates seven communities consisting of 807 skilled nursing and 54 residential care beds. Alliance Health at West Acres was originally built in 1965 and consists of one two-story building featuring 116 semi-private beds and 14 private beds.
The community was substantially renovated in 2017 using bank debt, which the $15 million FHA loan effectively replaces as permanent debt. The FHA loan features a 35-year term and a low, fixed interest rate.
About Lument
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.
