Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $25.9 million loan refinancing for Edgerton Hospital and Health Services, a critical access hospital in Edgerton, Wisconsin.
Edgerton Hospital and Health Services draws its roots from a community-owned, non-stock, tax-exempt corporation created in 1921 to build a red-brick hospital in downtown Edgerton. The new facility, which was built in 2011 with the help of an FHA-insured loan, provides acute inpatient care, swing bed care, and around-the-clock emergency and urgent care, in addition to diagnostic services, rehabilitation and same-day surgery. The hospital is affiliated with SSM Health Care of Wisconsin.
Love Funding Senior Director of Hospital Finance Steven Hunt secured the loan through the U.S. Department of Housing and Urban Development’s 242/223(a)(7) loan insurance program. Using the program, which supports the refinancing of existing FHA-insured hospital loans, enabled the hospital’s owners to lock in a low-rate, non-recourse loan for a term of 21 years. Added up, the new loan will generate $244,000 a year in debt-service savings, or more than $5 million over the life of the loan.
“The Love Funding hospital finance team helped us take advantage of this low-rate environment to generate significant savings and further our mission of providing exceptional healthcare for our communities,” said Charles Roeder, the hospital’s chief financial officer.
The transaction is the fourth hospital loan Hunt and Love Funding have refinanced since the company created a hospital financing unit in 2011, bringing the total refinanced to more than $445 million. Late last year, Hunt secured a $27.1 million loan refinancing for Santiam Memorial Hospital, an acute-care hospital in Stayton, Oregon.
The Santiam and Edgerton transactions were the two largest new hospital loan commitments HUD made in the fiscal year ended in September.
For more information, contact Steven Hunt at (678) 595-8238.