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Lument Closes $46M FHA Loan to Refinance Senior Housing Community in RI
Lument has closed a $45.9 million FHA Sec. 232/223(a)(7) loan to refinance Tockwotton on the Waterfront, a 156-unit seniors housing and care community in East Providence, RI. Senior managing director Aaron Becker led the transaction for Lument on behalf of the property’s owner, nonprofit Tockwotton Home, Inc.
“By leveraging our FHA expertise, we were able to significantly lower Tockwotton’s interest rate to generate nearly $250,000 in annual debt service savings, augmenting the $1.1 million in savings initially obtained when we helped with the prior FHA refinance in 2016,” said Becker. “The additional cash flow freed up by this transaction will allow Tockwotton to continue their mission of serving residents as a nonprofit company.”
The FHA 223(a)(7) loan refinances an existing FHA 232/223(f) loan with a low, fixed interest rate and 35-year term. In addition to reducing debt service payments, the successful closing funds replacement reserves that will ensure the long-term viability of the community.
- ◦Financing
