• .
    .

News Release: Capital One Closes $28.4M HUD Loan for IL Supportive Living Facility

Capital One Closes $28.4 Million HUD Loan to Refinance Illinois Supportive Living Facility

Bethesda, MD (October 3, 2018)Capital One announced today that it has provided a 35-year, fixed-rate $28.4 million HUD 232/223(f) loan to refinance a supportive living facility in Des Plaines, Illinois, a suburb of Chicago. The property includes 162 assisted living units, 150 supportive living units, and 71 new licensed skilled nursing beds. Senior Vice President Joshua Rosen originated the transaction for a repeat Capital One customer.

The refinancing was conducted under HUD’s revised 232/223(f) healthcare rules, which now allow a borrower to refinance and recapture equity without having to complete a two-year seasoning period. In this case, maximum LTV was 70 percent.

The unusual product mix of the property reflects the borrower’s long industry experience. The facility was originally constructed in 1967 as an independent living/supportive living facility. In 2015, the borrower began upgrading the independent living portion of the building, qualifying it for an assisted living license. The borrower then constructed a skilled nursing wing, which was completed in 2018.

“This transaction highlights the depth of Capital One’s expertise in 232/223(f) transactions,” Rosen said. “A portion of the property was in a floodway, which would have made it ineligible for the program. By identifying an opportunity to legally change the survey plat to carve out a floodway, we enabled the financing to go ahead.”

HUD’s 232/223(f) loan program, with its extended terms and low interest rates, provides a firm platform for assisted living operators as they navigate the seniors care market.

Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. Additional information can be found at capital.one/multifamily.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $248.2 billion in deposits and $364.0 billion in total assets as of June 30, 2018. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE

Existing Users Log In