Cedar Lane Senior Living 1 & 2, leonardtown, MarylanD
What: 114 unit senior mid-rise (two phases)
Client: Cedar Lane Senior Living Community I, Inc., 501(c)3 Maryland non-profit
Original Financing: CL 1: HUD Insured 236 Loan, Partial Section 8 subsidy, CL 2: HUD 202 Direct Loan/Section 8
GDG Services: Preservation Study, MU2B of Section 8 contract, prepayment of 236 Loan, refinancing with FHA 223(f) loan, HUD approval of unit combining, repurposing of Assisted Living units, application and award of AHP Grant; 2nd refinancing to combine CL 1 and CL 2 into one property with a new FHA loan for cash-out
Impact Statement: Cedar Lane Senior Living Community is a campus consisting of three senior living buildings. The oldest building, Cedar Lane 1, was originally financed with a 236 loan. This building has a mix of market rate units and Section 8 units, and over the years the market rate units had accumulated a high vacancy rate.
With the first refinancing FHA 223(f) loan was used fund needed upgrades at CL 1, including unit combining to improve marketability; all vacancy issues were solved. In 2022, GDG worked with the client to complete another refinancing which combined Cedar Lane I with Cedar Lane 2, resulting in more streamlined management, and cash-out for additional upgrades and pre-development for a new property.
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