Cambridge Realty Capital provided a $6,500,000 construction loan to finance the new construction of a 20-bed Memory Care Addition to The Pointe at Pontiac, an existing 60-bed Supportive Living Facility located in Pontiac, Illinois. Supportive Living is the Illinois version of Medicaid Waiver Assisted Living, whereby the State of Illinois provides Medicaid Funding to seniors 65 and older who would otherwise not have the financial resources necessary to reside in an Assisted Living Facility.
 
The construction loan is insured by the United States Department of Housing and Urban Development under its Section 241(a) program as administered by HUD’s Office of Residential Care Facilities. Loan proceeds will be used to fund the new construction addition and to complete improvements and repairs to the existing building.

Zach Scardina, Cambridge’s Vice President of Originations, said that the HUD loan provided a Fixed-Rate, non-recourse, interest-only, construction loan which converts upon construction completion to a Fixed-Rate 35-year, non-recourse, fully amortizing, permanent loan.

The Borrower is an Illinois limited liability company. The interest rate was not disclosed.