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NEW YORK—OREC Securities, LLC, doing business as Lument Securities, Member FINRA/SIPC, recently closed a $22.8 million bond placement using the 142(d) program to fund the construction of The Retreat at Indian Land, a seniors housing community to be located in South Carolina and to be operated by Phoenix Senior Living.

The successful transaction was spearheaded by Kevin Oakley, director for Lument in the Southeast.

“The 142(d) program was an ideal solution for the new construction of The Retreat at Indian Land, as it allows the borrower to finance construction with tax-exempt bonds and enjoy the benefits of pricing and structure in that market,” said Oakley.

Section 142(d) of the U.S. tax code allows for-profit developers to use the tax-exempt bond market to issue long-term, non-recourse bonds at competitive high-yield interest rates for the new construction or substantial renovation of seniors housing and care communities that meet certain income requirements.

“The higher-leverage, fixed-rate, non-recourse financing will allow the borrower, Whitehall Senior Living, to stretch equity for use in other projects and preserve their credit strength for guarantees on future debt,” Oakley added.

The new community will offer 87 units of independent living, assisted living, memory care, and respite services. It is being developed by Whitehall Senior Living, LLC, a South Carolina-based developer, and will be operated by Phoenix Senior Living, LLC, based in Roswell, Ga.

About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit lument.com.

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