Capital One announced today that it has provided a 35-year, fixed-rate $28.4 million HUD 232/223(f) loan to refinance a supportive living facility in Des Plaines, Illinois, a suburb of Chicago. The property includes 162 assisted living units, 150 supportive living units, and 71 new licensed skilled nursing beds. Senior Vice President Joshua Rosen originated the transaction for a repeat Capital One customer.

The refinancing was conducted under HUD’s revised 232/223(f) healthcare rules, which now allow a borrower to refinance and recapture equity without having to complete a two-year seasoning period. In this case, maximum LTV was 70 percent.

The unusual product mix of the property reflects the borrower’s long industry experience. The facility was originally constructed in 1967 as an independent living/supportive living facility. In 2015, the borrower began upgrading the independent living portion of the building, qualifying it for an assisted living license. The borrower then constructed a skilled nursing wing, which was completed in 2018.

“This transaction highlights the depth of Capital One’s expertise in 232/223(f) transactions,” Rosen said. “A portion of the property was in a floodway, which would have made it ineligible for the program. By identifying an opportunity to legally change the survey plat to carve out a floodway, we enabled the financing to go ahead.”

HUD’s 232/223(f) loan program, with its extended terms and low interest rates, provides a firm platform for assisted living operators as they navigate the seniors care market.