Public Finance - Worthington Manor (Conroe, TX)
Client: Worthington Manor (Conroe, TX)
Transaction Type: FHA Section 232 Insured (40-Year Fixed Rate)
Role: Placement Agent
- The 114,000 square foot, 118-bed assisted living and memory care facility will be constructed in Conroe, TX. The entire project will cost approximately $37.2M. Funding comes from a variety of sources, including construction loans from Greystone Funding Company LLC ($28.95M (75% loan to value)), MidHudson LLC ($4.5M), and several smaller equity partners ($3.75M).
- Utilizing FHA Section 232 Loan Program for new construction healthcare facilities, the borrower secured 40-year fixed rate financing, including a 21-month interest only construction period, at a base rate of 4.37% plus a 0.77% Mortgage Insurance Premium (MIP) for an all-in rate of 5.14%.
- This property is to be constructed on a vacant lot purchased in 2017 for $3M. It is located 40 miles north of Houston in a location considered to be a primary market for senior housing properties.
- The facility will be 100% private pay (i.e. no Medicare or Medicaid accepted) with a projected 93% stabilized occupancy in 2022.