Lument Closes 2021 with Record $1.49 Billion in Seniors Housing and Care Originations, Including Note Modifications
New York, NY — Lument announced today that it closed 137 seniors housing and care transactions in 2021 totaling $1.49 billion, a record for the company. Despite the challenging circumstances the seniors housing and care industry faces due to COVID variants, staffing issues and other difficulties, the firm was able assist clients in 31 states with financing structures that position their communities for long-term success.
Lument’s 2021 volume included 18 FHA Sec. 232/223(f) transactions totaling $154.4 million, eight FHA Sec. 223(a)(7) refinances totaling $114.4 million, two FHA Sec. 223(f) refinances totaling $30.5 million, and an FHA Sec. 232 new construction deal for an assisted living (AL) community in Illinois. The firm closed deals across the country, with 21 transactions for clients based in Ohio, 17 in Indiana, 12 in Illinois, eight in Virginia, and six each in California, Minnesota and Oklahoma.
FHA note modifications were a big aspect of Lument’s 2021 transaction volume, with 92 transactions totaling $828 million. These modifications allow borrowers to maintain their existing FHA loans while reducing interest rates and monthly payments, critical features helping the industry bounce back from the pandemic. Other terms, such as the original 30-year term and maturity date, remain unchanged.
In a transaction that closed in late December 2021, Lument provided a $12.7 million FHA Sec. 232 note modification at Park Place Senior Living, a 172-unit seniors housing community in Fort Wayne, Indiana, originally constructed in 2009 with FHA funding. Park Place, which is owned by Maryland-based Sabra Health Care REIT, Inc., consists of 158 AL beds in 132 units and 40 dementia care beds/units. The transaction immediately improved cash flows and required minimal time and financial investment from the borrower.
Lument also helped Providence Place of Pottsville, Pennsylvania complete a $10 million note modification. The family-owned seniors housing community offers independent living (IL), AL, and memory care services in 149 units.
Lument has maintained this momentum and focus entering 2022. The firm closed six FHA note modifications in January totaling $31.1 million for three AL and skilled nursing communities in Ohio, two AL communities in Minnesota, and one AL community in Illinois. For example, it provided an $8.1 million note modification to Sugar Loaf Senior Living, which offers AL services for 79 units in Winona, Minnesota.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.