New York, NY — July 18, 2022 — Lument recently announced the closing of two loans totaling $30.5 million to expand and renovate Grundy County Memorial Hospital, a critical access hospital (CAH) in Grundy Center, Iowa. The financing structure included a $24.3 million U.S. Department of Agriculture (USDA) Community Facilities program direct loan and a $6.2 million tax-exempt revenue note. Lument Vice President Adam Walter and Assistant Vice President Patrick Roan led the transaction.
The $30.5 million financing was used in conjunction with $11.5 million in borrower equity as part of an overall $42 million project to fund a 35,000 square foot expansion of the hospital’s surgery and radiology departments, as well as a renovation of existing lab department and corridor spaces. Proceeds from the transaction will also be used to help improve departmental and staff efficiencies throughout the hospital.
“It was very rewarding to work with Grundy County Memorial Hospital to put together a funding package that will provide innumerable benefits to the community,” said Walter. “As an added benefit, it will also help advance the sponsor’s financial goals.”
The $24.3 million USDA commitment was secured at a 35-year term and a low, fixed interest rate. It will serve as the primary permanent funding mechanism for the hospital’s renovations. The $6.2 million loan has a 20-year term. The financing was completed in less than a year, despite a difficult lending landscape that included rising construction costs and interest rates.
“Lument’s funding solution provided several important benefits,” added Adam Scherling, administrator at Grundy County Memorial Hospital. “By securing long-term financing with no prepayment penalties, we were able to fully fund this ambitious project. This means that our patients and the residents of our community will be able to take advantage of expanded services while the hospital maintains strong credit metrics to ensure our future financial viability.”
Grundy County Memorial Hospital broke ground for the new renovations on June 29, 2022, with completion planned for late 2023.
About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument 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. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.
