Cambridge Realty Capital reports providing $6,145,000 to refinance Avalon Memory Care Keller, located in Keller, Texas. Brent Holman-Gomez, Cambridge Senior Vice President, reported that the fully amortized, 35-year loan was provided for the owner, a Texas limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program, which is used to refinance existing HUD loans. Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.
Avalon Memory Care Keller is a 50-bed stand-alone memory care facility. As an award-winning facility, Avalon Memory Care delivers Alzheimer’s and dementia care and services in a smaller environment in order to maintain the highest quality of care and staff and resident satisfaction.
According to Holman-Gomez, the borrower wished to simply recast bank debt into a long-term non-recourse mortgage, making it a prime candidate for HUD’s Express Lane program. The Express Lane program was created as a means for fast-tracking applications from low-risk borrowers. (Applications must meet criteria with regard to loan value, minimum debt service coverage, and others, in order to qualify for the Express Lane program.) Express Lane applications essentially jump to the head of the HUD loan processing line, resulting in quicker turnaround time, often within weeks instead of months, and sometimes even within days.
In the case of Avalon Memory Care Keller, Holman-Gomez stated that “the application to commitment was issued in a record-setting 5 calendar days, as the underwriting queue was bypassed. Cambridge’s ability to early rate-lock allowed the borrower to take advantage of a significant temporary drop in mortgage interest rates.”
