Lancaster Pollard secures $6.7 million for senior housing refinancing
Lancaster Pollard arranged $6.7 million in refinancing, via a privately placed, tax-exempt, fixed-rate note with a regional bank, for Green County Village, Bartlesville, OK.
The seniors housing community has 97 units of independent living, 30 units of assisted living and 28 memory care beds. Organized by three local churches and opened in 1990, it remains an unaffiliated nonprofit corporation governed by a self-perpetuating board of directors.
During the early 2000s, the community experienced financial difficulties, which necessitated a restructuring of its debt at the beginning of 2005, according to Lancaster Pollard. Despite the previous financial challenges, Lancaster Pollard said it was impressed with several strategic initiatives implemented by the board of directors and its management company, Life Care Services. Key successes included achieving a stable operating income as well as the implementation of the fiscal discipline necessary to build cash reserves from its modest profits.
The final fixed interest rate was below 3.75% and generated more than $70,000 a year in annual savings. In addition, because the final negotiated terms included no cash escrows, approximately $250,000 was released at closing to Green Country Village.