HFC proudly announces the closing of a $10,521,700 loan refinancing the Cottages of Perry Hall, a Charter Senior Living Community.
This loan was closed through the HUD 232/233(f) program which offers 35 year fixed rates and no calls. This loan has an interest rate of 5.7% plus MIP. HFC compiled the application, assisted in underwriting, and organized a successful closing. Proceeds from this loan repaid senior and mezzanine debt used to purchase the building. HFC interacted with both lenders to obtain needed extensions in order to complete the HUD process.
HFC and Charter Senior Living have standing ties, as does HFC with the Cottages of Perry Hall property. In 2017, HFC met with a Chicago based Private Equity Group (PEG). The PEG was looking to buy a property in HFC’s local market of Perry Hall, MD. The property (now called the Cottages of Perry Hall) was acquired in late 2017, with acquisition financing arranged by HFC. The Property was managed and operated by the PEG’s minority partner, Charter Senior Living, also based out of Chicago.
In 2019, Charter came to HFC with a problem; the PEG wanted to sell the property and monetize the considerable upside in value achieved, but Charter wanted to continue to manage the property. HFC proposed that Charter buy it themselves using a Leveraged Buy-Out structure that would purchase Birchwood’s majority interest, give Charter ownership of the property, and allow them to continue management. HFC helped both parties negotiate a mutually acceptable transaction and then used conventional and mezzanine lending sources to fund the acquisition. This allowed Charter to own the property 100% with minimal equity contribution.
For more information about Charter Senior Living and the Cottages of Perry Hall, visit www.cottagesofperryhall.com.