Ziegler Financing Corp., the Federal Housing Administration-insured mortgage lending arm of specialty bank Ziegler, has closed on the $94.3 million refinancing of the not-for-profit Village at Gainesville in Florida, the company announced Tuesday.
“By taking a unique approach to the Section 232 board and care criteria, this loan accomplished the largest refinance of a single-asset senior housing community in [the Department of Housing and Urban Development’s] portfolio,” according to ZFC.
Village at Gainesville, sponsored by SantaFe Senior Living, offers 511 unlicensed independent/board and care units and 128 licensed assisted living/memory care units. ZFC said it was able to demonstrate that the unlicensed units met HUD’s board and care criteria because many independent living residents are requiring increased healthcare services at lower levels of senior living.
ZFC recommended refinancing the outstanding tax-exempt bonds with the FHA Section 232/223(f) program to enable the Village at Gainesville to lower its debt service by locking in a 35-year, fixed interest rate of less than 3.5%.
“This was our first experience utilizing the FHA mortgage insurance program,” said Troy Hart, president of SantaFe Senior Living.
“This refinancing represented a great example of the changing senior housing industry dynamics and how a not-for-profit can utilize the Section 232/223(f) program to realize debt service savings, which can be used to further its overall mission,” said Bill Mulligan, president of ZFC.