COLUMBUS, Ohio (June 7, 2005) – Wellington Place, a senior living community in northern Ohio, closed this week on a financing that will offer it the stability to grow in the future.

Lancaster Pollard underwrote the $5.27 million mortgage loan to refinance an interest-only construction loan, the latest transaction in an ongoing relationship with O’Neill Management. The refinance provides improved cash flow stability and a permanent funding source for the facility, “allowing management resources to focus exclusively on operations and growth,” Lancaster Pollard President Brian Pollard said.

The non-recourse loan is fixed at 5.25% for 35 years, and Lancaster Pollard financed the facility using mortgage loan insurance provided under the Federal Housing Administration’s Sec. 232/223 (f) program for senior living facilities. The loan also funds a reserve to assure the facility has money for repairs or other future capital expenditures.

“It enabled us to get permanent financing on the project and then apply for a HUD supplemental loan to do phase two,” Wellington Place manager John O’Neill said. “We’re at a maximum capacity where we have to expand.” Wellington Place was built in 2001. It has 51 assisted living units and 18 nursing beds. The spacious, homelike atmosphere is designed to keep residents involved in their community, O’Neill said.

The refinancing offers the predictability of a fixed interest rate and replaces a variable-rate, interest-only loan. The community now can build equity and better budget for the future and intends to seek funding to add more nursing beds and assisted living units, including 24 units for patients with Alzheimer’s disease.

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