Cambridge Realty Capital Companies reports arranging a $22,267,500 HUD Lean loan to finance The Views Senior Living at Marion, a 112-bed assisted living and skilled nursing care facility located in Marion, Iowa. Jeffrey A. Davis, Cambridge Chairman, said the fully-amortized, non-recourse, 22-month construction loan term plus 40-year permanent loan term was arranged for the owner, an Iowa-based operator, using HUD Section 232. Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans. “We were able to obtain a very low, fixed-rate loan for the entire duration of loan term, with only one rate-lock and rate locked prior to initial closing,” Davis stated. “Not only that, but the loan is fully-assumable in the event that the borrower chooses to exit the facility.”
The Views at Marion will be the first of its kind in the area. The facility will be state-of-the-art, with a “prairie” style exterior design to fit in with local architecture. Additionally, The Views at Marion will be the first senior living facility in the USA that will be WELL Certified.
The idea behind WELL is to “explore how design, operations and behaviors within the places where people live, work, learn and play can be optimized to advance human health and well-being.” To obtain WELL certification, building design must enhance the standard of living of its occupants in seven key areas: air, water, nourishment, light, fitness, comfort and mind.
The Views will place special emphasis on design for dementia residents. The design includes features like a “Main Street” Iowa, with post office, general store, shops and boutiques. This type of design helps dementia residents improve memory. It also includes flexible floor plans for standard ALF and memory care ALF which will allow for the operator to reposition standard ALF units to memory care ALF, and vice versa, to accommodate future changes in the market.
Cambridge has an ongoing relationship with this borrower and its mortgage broker. It is the second transaction Cambridge has completed with both companies. The borrower has undertaken multiple senior living projects, with several in the state of Iowa. Additionally, the highly-experienced, Iowa-based general contractor of the project has been in business since 1968 and has completed a variety of senior housing and healthcare projects. The Midwest-based architect also brings considerable senior living/healthcare design experience to the table and is regarded as an expert in the field.
Because the borrower had prior experience working with HUD, it provided its top-level staff members Gary Golding and Scott Werdal to the deal. The borrower/developer team and the Cambridge team were able to clearly articulate and demonstrate a need for this type of project in the primary market area. This involved educating HUD on the strength of the primary market area and its need for a project of this caliber. The Views will be one of the most unique projects in the HUD 232 portfolio. “Cambridge is proud to be a part of this historic project,” says Davis.