Love Funding Lands $6.6M Loan for New Senior Housing in Utah
- Jul 12, 2016
Washington, D.C.—FHA lender Love Funding has closed a $6.6 million bridge loan for the construction of a new assisted living and memory care center in Ogden, Utah.
Utah-based Giza Development is building the property, named Shadow Valley Assisted Living and Memory Care, which will offer 62 beds upon completion. Love Funding Senior Director James Vanar secured the bridge financing and Midland States Bank, the parent company of Love Funding, provided the capital.
The financing allows the developer to start construction more quickly than with a HUD-insured loan and avoid paying Davis Bacon prevailing wages, which reduces the cost of the project, according to Love Funding’s release. Conditions of the funding will require Giza Development to wait three years to convert the financing to a permanent HUD loan.
“Love Funding’s bridge loan platform was an incredible asset because it got us under construction much faster than more traditional HUD financing scenarios,” said Giza Development President Michael Wright. “Most importantly, the bridge loan allowed us to get residents into our facilities quickly. And working with James and the other professionals at Love Funding and Midland States Bank couldn’t have been easier or more efficient. We knew we had a great project, but their thorough, expert review gave us even more confidence in what we were building.”
Love Funding started the bridge loan platform in May 2015 to provide interim funding support for acquisition and refinancing applications on HUD multifamily and healthcare loans. Later on, the platform was expanded to include tax credit equity bridge loans and conventional financing for multifamily and healthcare new construction. Love Funding has funded more than $65 million in bridge loans to date, with another $300 million in the pipeline.
For more on Love Funding’s bridge loan platform and its benefits, see MHN’s exclusive interview with the company’s Jon Camps.