The Heritage House Community, an assisted living and memory care facility in Goleta, Calif., near Santa Barbara, has secured a $6.77 million loan through the U.S. Housing and Urban Development’s Section 232/223(a)(7) health care refinancing program.

The existing HUD financing on the 56-unit/68-bed facility was paid off with a non-recourse loan at a lower interest rate. The loan term was extended to the original 480 months, lowering monthly debt-service payments. The mortgage carries a fixed interest rate that is fully amortizing over the 40-year term. The interest rate was not disclosed, but described as “competitive”.

Andrew Behrens, executive vice president of CBRE Capital Markets in San Francisco, originated the loan on behalf of the Heritage House Group, a California corporation owned by members of the McGeever family. The country home estate reflects the historic Goleta farm architecture with covered porches, manicured gardens and a lemon tree orchard. McGeever Management LLC manages the property on behalf of the ownership.

"The borrower will realize substantial debt-service savings as a result of utilizing the HUD FHA streamlined refinance program,” says Jayne Hulbert, president of CBRE HMF, a direct HUD FHA lender. “This is a strategic time to lock in and obtain historically low rates for a 40-year fixed term.”