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Ziegler Closes $14.7 Million Portfolio of HUD Refinancings in Northern California

Sierra Oaks of Redding (an 85-unit assisted living and memory care campus) and Oakdale Heights of Redding (a 60-unit standalone assisted living facility) are both located in Redding, CA,within the northern Sacramento Valley.

The communities had approximately $14.1 million in outstanding Section 232/223(f) HUD mortgages that were originally financed in 2014 at interest rates in the mid-4s by another HUD lender. ZFC recommended refinancing the existing debt under HUD’s Section 232/223(a)(7) program to allow both assets to lower their debt service by locking low, long-term fixed interest rates while also extending the maturities of the loans to a full 35 years. Overall, these refinancings recapitalized the facilities and provided the opportunity for increased annual income distributions to the ownership group.

“Ziegler Financing Corporation was pleased to be able to execute these transactions that created significant value for the client and the community they serve. These transactions will help secure an improved return for ownership and ultimately result in additional capacity to better the quality of life for the residents who continue to benefit from the well cared for accommodations. It has been a pleasure working with the owners and on-site management to complete these transactions.” stated Jeremy Frankel, senior vice president of Ziegler Financing Corporation.

Ziegler Financing Corporation’s dedicated team of FHA-insured financing professionals serves for-profit, not-for-profit, and community-based organizations to deliver high-leveraged, low-cost, fixed-rate debt through FHA-insured financing programs.