Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced closings for the refinancing of two skilled nursing facilities in the St. Louis area.
The properties refinanced are Parkwood Skilled Nursing and Rehabilitation Center, a 124-bed skilled nursing facility in Maryland Heights, Missouri, and Marymount Manor, a 176-bed combined skilled nursing and assisted living facility in Eureka, Missouri. Both properties are owned by MMM Holding, which is based in Texas.
Senior Director Robyn Cunningham and Director Adrian Hartman of Love Funding’s St. Louis office secured the financing through the U.S. Department of Housing and Urban Development’s Section 232/223(f) program for the refinance of healthcare properties.
Marymount Manor and the Parkwood Center each posed difficult challenges during the refinancing process. The Parkwood Center had recently weathered two disruptions that made existing beds unavailable for a period of time: Significant road repairs in front of the facility in 2011, and a tornado in the same year. Marymount Manor is constrained by a ground lease – the property is owned by the city of Eureka – and there are no hospitals in the primary market area. Additionally, other competing nearby facilities experienced low occupancies, which HUD incorrectly previously interpreted as excess supply in the market area.
These obstacles proved too much for another lender to complete the closing of Marymount Manor, but Love Funding was able to tap its HUD expertise to marshal both deals through successfully.
“Though there were challenges that threatened the approval of the loan, Love Funding explained point-by-point to HUD how each of the challenges could be handled,” said Hartman. “We showed HUD each of the properties was a good investment – we took the challenge in stride,” said Cunningham.