ORIX Real Estate Capital Sets Record for Transaction Par Amount
COLUMBUS, Ohio–(BUSINESS WIRE)–The U.S. Department of Housing and Urban Development (HUD) recently released production data for its FHA 232 mortgage insurance program, which finances seniors housing properties, for the fiscal year ending Sept. 30, 2019. Over the course of the fiscal year, the program closed $3.7 billion of loan volume, besting the previous year’s $3.6 billion. Additionally, the average loan size of $13 million was a record for the program. A total of 288 loans were closed, as the program maintains its position as an important source of debt capital for the seniors housing industry.
“The FHA 232 program remains an essential part of the seniors housing and care industry,” said Kass Matt, president of Lancaster Pollard. “By leveraging the program’s efficiency, we were able to close 78 loans through the program in 2019, totaling $903 million. The collective benefits for our clients are immense.”
Twenty-one lenders closed loans within the program in fiscal year 2019. ORIX Real Estate Capital (OREC), through its Lancaster Pollard division, led all lenders in number of loans closed and par amount, with its $903 million in par amount setting a new record for the program. OREC also led all lenders in construction loan closings, completing seven transactions totaling $112 million, over 50% of the program’s total construction volume.
Since its inception in 2010, the Lean program has insured over 4,000 loans totaling $37.6 billion, with approximately 71% of that for skilled nursing communities and 27% for assisted living. Throughout that ten-year period, OREC leads all lenders in both number of deals and par amount, with 970 closed deals, totaling $7.79 billion.
OREC is the combined company of Lancaster Pollard and RED Mortgage Capital. Lancaster Pollard helps health care and senior living providers expand and improve their services by delivering financial advice and financing solutions. Securities, investment banking and advisory services are provided through OREC Securities, LLC, a member of FINRA/SIPC. OREC is a subsidiary of ORIX Corporation USA, which provides investment capital and asset management services to clients in the corporate, real estate and municipal finance sectors. ORIX USA and its family of companies have $64 billion of assets under management and a team of more than 1,000 employees spanning offices across the U.S. and Brazil. Its parent company, ORIX Corporation, is a publicly owned, Tokyo-based international financial services company.
Source: U.S. Department of Housing and Urban Development , Office of Healthcare Programs, Section 232 – LEAN, Number of Initial Endorsements and Mortgage Amounts by lender at Firm Commitment, FYE2019 (Sept 30, 2019).
Mark A. Wilson