In One Day, HUD Office Closes Most LEAN Loans

DALLAS—Senior Living Properties LLC is an owner-operator of 31 Texas skilled nursing facilities and was the borrower for eight skilled nursing facilities in a recent funding transaction. The properties include 841 licensed nursing home beds in Carthage, Childress, Graham, Jacksonville, Palestine, Paris, Temple and Sweetwater, TX.

Hunt Mortgage Group provided the loan in the amount of $27.6 million to refinance the facilities. The financing was arranged through the HUD LEAN program and closed with the Fort Worth HUD office. Proceeds from the new loans will enable Senior Living Properties to refinance a temporary loan to permanent fixed-rate loans, and provide funds for repairs and improvements that the company viewed as important for the long-term vision for each property.

“Senior Living Properties came under new management in 2014 and the new leadership team has completed one of the best turnarounds that I have ever seen, both operationally and clinically,” noted Jim Neil, director at Hunt Mortgage Group. “The HUD office in Fort Worth informed us that this is the largest number of LEAN transactions that they have ever closed in a single day. This was a complex group of transactions.”

The complexity was not only due to the volume of properties but more so because of the structure, GlobeSt.com learns.

“Senior Living Properties entered the upper payment limit program soon after its ownership change. This program required a partnership with a governmental entity whereas that entity became the technical operator of the property and holder of the bed licenses,” Neil tells GlobeSt.com. “The partnership of choice in Texas is with the Hospital Districts. Because the operator is key to the HUD transaction, this requires the involvement of the hospital district board and attorneys. Luckily, Senior Living Properties has great Hospital Districts partners with counsel that are well versed in the program.”

DALLAS—Senior Living Properties LLC is an owner-operator of 31 Texas skilled nursing facilities and was the borrower for eight skilled nursing facilities in a recent funding transaction. The properties include 841 licensed nursing home beds in Carthage, Childress, Graham, Jacksonville, Palestine, Paris, Temple and Sweetwater, TX.

Hunt Mortgage Group provided the loan in the amount of $27.6 million to refinance the facilities. The financing was arranged through the HUD LEAN program and closed with the Fort Worth HUD office. Proceeds from the new loans will enable Senior Living Properties to refinance a temporary loan to permanent fixed-rate loans, and provide funds for repairs and improvements that the company viewed as important for the long-term vision for each property.

“Senior Living Properties came under new management in 2014 and the new leadership team has completed one of the best turnarounds that I have ever seen, both operationally and clinically,” noted Jim Neil, director at Hunt Mortgage Group. “The HUD office in Fort Worth informed us that this is the largest number of LEAN transactions that they have ever closed in a single day. This was a complex group of transactions.”

The complexity was not only due to the volume of properties but more so because of the structure, GlobeSt.com learns.

“Senior Living Properties entered the upper payment limit program soon after its ownership change. This program required a partnership with a governmental entity whereas that entity became the technical operator of the property and holder of the bed licenses,” Neil tells GlobeSt.com. “The partnership of choice in Texas is with the Hospital Districts. Because the operator is key to the HUD transaction, this requires the involvement of the hospital district board and attorneys. Luckily, Senior Living Properties has great Hospital Districts partners with counsel that are well versed in the program.”