Lument has completed an $18.9 million U.S. Department of Housing and Urban Development /Federal Housing Administration Sec. 223(a)(7) refinance for The Guilford House, a 96-bed assisted living and skilled nursing facility in Guilford, CT.

The closing refinances a blended-rate loan from 2019 provided by Lument to fund an expansion of AL units and services. Aaron Becker of Lument led the transaction.

The $18.9 million FHA Sec. 223(a)(7) loan provided by Lument replaces existing debt with a reduced interest rate and mortgage insurance premium and provides approximately $110,000 in annual debt service savings. To ensure debt service savings were maximized, Lument obtained a 40-month term extension on the loan.

The Guilford House was acquired in 2002. A FHA loan in 2007 spurred the facility’s renewal and emergence as a 75-bed SNF specializing in short-term rehabilitation. In 2019, the FHA program was used again to fund the addition of 21 AL units to the existing building.