Pillar has originated a $32.5 million HUD 232 loan to National Healthplex for the conversion and rehabilitation of the The Regency at Glen Cove, an assisted living and memory care facility in Glen Cove, New York on Long Island.
In addition to facilitating the conversion of the property, the fixed-rate, fully amortizing 40-year loan will repay existing municipal bonds. The transaction involved a ground lease of the project land and improvements, a payment in-lieu of taxes agreement (PILOT), and tax-exempt bonds issued by the Glen Cove Industrial Development Agency (GCIDA). In addition, the transaction had to comply with all applicable HUD and NY State building lien laws, “which added another unique layer of intricacy,” according to a statement from Pillar, a Guggenheim Partners affiliate.
“Because there was a lot of complexity to the deal, Pillar worked closely with HUD, GCIDA, the non-profit borrower, the existing bond holder, counsel and all construction-related entities to navigate this complex process and ensure that the transaction gained approval and ultimately closed,” said Joshua Hausfeld, managing director of Pillar’s Healthcare Finance team, who originated loan.
A portion of the building will be converted to a memory care center, adding 24 units to the back of the building on the third and fourth floors. Once converted, The Regency will feature a total of 132 units. Plans also call for a new courtyard, elevators, common areas, and building finishes.
Pillar is a direct lender for multifamily and healthcare properties with a lending platform consisting of Fannie Mae, Freddie Mac, HUD and CMBS products. National Healthplex is a 501(c)(3) non-profit.