Properties Financed - Assisted Living

December 21, 1999. Dan Lyons, Vice President of Rockport Mortgage Corporation, has announced the recent closing of Landmark at Monastery Heights, a $10,978,000 tax exempt bond transaction issued by the Massachusetts Development Finance Agency (MDFA). Rockport Mortgage Corporation provided credit enhancement with FHA mortgage insurance through the 232 program. HUD issued a Firm Commitment in less than 90 days from application submission. The 40-year self-amortizing loan will be used for the substantial rehabilitation of a former Monastery located in West Springfield, Massachusetts. The rehabilitation will result in 105 total units and 115 beds (70 assisted living and 35 alzheimer units).

The proposed development consists of interior rehabilitation of an existing, four-story former Monastery. It is anticipated that its unique architectural detail, design and character, much of which is historical, will create a marketing advantage for the subject project. The attractive, poured concrete building with stone veneer and Spanish tile roof was originally built in 1925, with an addition completed in 1950. The completed facility will consists of approximately 89,696 gross square feet. The anticipated construction time is 14 months. It is significant to note that the subject property, a former Catholic monastery, has historically been utilized for religious events and retreats. Consequently, the subject has strong ties to the Catholic community throughout the larger regional area. Although the facility will no nonsectarian, there will likely be additional referrals generated from its former Catholic affiliation.

Unique features of the financing structure is that the project had a historic tax credit allocation and sold the triple A rated bonds at a premium allowing the borrower to finance 100% of the development costs.