Phoenix ALF Financing Success Stories: Real Client Case Studies

These success stories showcase how Jaken Finance Group has helped assisted living facility owners and operators in the Phoenix metropolitan area achieve their financing goals. Each case study demonstrates our expertise in navigating the unique opportunities of the Phoenix market.


Success Story 1: Scottsdale Premium Acquisition

The Challenge

A regional senior care operator identified a 70-bed assisted living facility in Scottsdale as an ideal acquisition target. The facility had strong occupancy and premium positioning but required a competitive offer to win against institutional buyers.

Client Profile

Factor Details
Operator Experience 14 years, 5 facilities
Target Property 70-bed ALF, Scottsdale
Purchase Price $17.2 million
Condition Excellent
Occupancy 93%

The Solution

Jaken Finance Group structured HUD 232 acquisition financing:

HUD 232 Loan:

Component Amount
Loan Amount $14,620,000
Down Payment $2,580,000 (15%)
Interest Rate 5.25%
Term 35 years
Monthly Payment $78,900

The Results

Metric Outcome
Closing Timeline 9 months
Total Financing $14,620,000
DSCR 1.42x
Occupancy Post-Acquisition 95%
NOI Improvement 10%
Non-Recourse Yes

"The HUD 232 loan gave us the long-term fixed rate and non-recourse structure we needed for this premium Scottsdale property. Jaken's expertise made the process smooth." - Regional Operator, Scottsdale


Success Story 2: Gilbert New Construction

The Challenge

A development group wanted to build a new 65-bed assisted living facility in Gilbert to serve the rapidly growing East Valley market. They needed construction financing with a clear path to permanent financing and wanted to minimize equity requirements.

Client Profile

Factor Details
Developer Experience 12 years, 5 prior projects
Project 65-bed new construction
Location Gilbert
Total Budget $17.5 million
Timeline 14 months construction

The Solution

Jaken Finance Group arranged SBA 504 construction-to-permanent financing:

SBA 504 Structure:

Component Amount Source
Bank Loan (50%) $8,750,000 Participating Bank
CDC Loan (40%) $7,000,000 SBA/CDC
Equity (10%) $1,750,000 Developer
Total $17,500,000

Loan Terms:

Feature Details
Construction Period 14 months
Interest During Construction Interest reserve
Permanent Rate 6.15% fixed
Term 25 years

The Results

Metric Outcome
Construction Completed On time, under budget
Opening Occupancy 42% (pre-leased)
12-Month Occupancy 84%
24-Month Occupancy 94%
Stabilized NOI $1.55M
Property Value $23M

"The SBA 504 program allowed us to build a quality facility with only 10% down. Jaken's expertise in both construction and SBA financing made this project possible." - Development Group, Gilbert


Success Story 3: Mesa Refinance and Expansion

The Challenge

A family-owned 55-bed assisted living facility in Mesa had a balloon payment coming due. The owners wanted to refinance, take cash out for a memory care addition, and secure long-term fixed-rate financing.

Client Profile

Factor Details
Ownership Family-owned, 14 years
Facility 55-bed ALF, Mesa
Existing Debt $5.8M at 7.25%
Property Value $11.5 million
Expansion Goal 18-bed memory care

The Solution

Jaken Finance Group arranged HUD 232 refinancing with cash-out:

HUD 232 Refinance:

Component Amount
New Loan Amount $9,775,000
Payoff Existing $5,800,000
Cash Out $3,650,000
Closing Costs $325,000
Interest Rate 5.15%
Term 35 years

Cash-Out Use:

Purpose Amount
Memory Care Addition $3,200,000
Working Capital $450,000

The Results

Metric Before After
Monthly Payment $52,000 $52,700
Total Beds 55 73
Revenue Increase - 40%
Property Value $11.5M $17.2M
Equity Created - $5.7M

"The HUD refinance allowed us to add memory care beds while barely increasing our monthly payment. The 35-year fixed rate gives us peace of mind for the future." - Family Owner, Mesa


Success Story 4: Surprise Value-Add Acquisition

The Challenge

An experienced turnaround operator identified an underperforming 50-bed assisted living facility in Surprise. The facility had 70% occupancy and needed operational improvements. Traditional lenders were hesitant due to the turnaround nature.

Client Profile

Factor Details
Operator Experience 16 years, turnaround specialist
Target Property 50-bed ALF, Surprise
Purchase Price $5.2 million
Current Occupancy 70%
Target Occupancy 90%+

The Solution

Jaken Finance Group structured bridge-to-permanent financing:

Phase 1 - Bridge Loan:

Component Amount
Loan Amount $4,160,000
Down Payment $1,040,000 (20%)
Interest Rate 10.5%
Term 24 months
Interest Only Yes

Phase 2 - Permanent (after stabilization):

Component Amount
Loan Amount $5,100,000
Interest Rate 6.25%
Term 25 years
Amortization Fully amortizing

The Results

Metric Acquisition 18 Months Later
Occupancy 70% 93%
Monthly Revenue $155,000 $235,000
NOI $360,000 $680,000
Property Value $5.2M $9.1M
Equity Created - $4.0M

"Other lenders wouldn't touch this deal because of the low occupancy. Jaken understood turnaround operations and structured financing that gave us time to execute our plan." - Turnaround Operator, Surprise


Success Story 5: Chandler Portfolio Expansion

The Challenge

A regional operator with two assisted living facilities in the East Valley wanted to acquire a third facility and consolidate all debt under better terms. They needed to move quickly to secure the acquisition.

Client Profile

Factor Details
Portfolio 2 ALFs, 100 total beds
Locations Gilbert, Chandler
Existing Debt $10.2M across 3 loans
Acquisition Target 50-bed ALF, Chandler
Acquisition Price $7.0 million

The Solution

Jaken Finance Group arranged portfolio financing:

Portfolio Loan:

Component Amount
Existing Debt Payoff $10,200,000
Acquisition Financing $5,950,000
Working Capital $500,000
Total New Loan $16,650,000
Interest Rate 6.5%
Term 10 years

The Results

Metric Before After
Number of Facilities 2 3
Total Beds 100 150
Number of Loans 3 1
Blended Rate 7.8% 6.5%
Monthly Payment $105,000 $118,000
Portfolio Value $18M $27M

"Jaken helped us consolidate our debt and acquire a new facility in one transaction. The simplified structure and better rate improved our cash flow significantly." - Regional Operator, East Valley


Success Story 6: Peoria First-Time Buyer

The Challenge

A first-time ALF buyer with healthcare management experience wanted to acquire a 40-bed facility in Peoria. The facility needed renovations and operational improvements but offered strong value-add potential.

Client Profile

Factor Details
Buyer Experience 10 years healthcare management
Target Property 40-bed ALF, Peoria
Purchase Price $3.8 million
Renovation Budget $650,000
Current Occupancy 76%

The Solution

Jaken Finance Group arranged SBA 7(a) acquisition and renovation financing:

SBA 7(a) Loan:

Component Amount
Acquisition $3,800,000
Renovation $650,000
Working Capital $250,000
Total Loan $3,995,000
Down Payment $705,000 (15%)
Interest Rate 9.5%
Term 25 years

The Results

Metric Acquisition 24 Months Later
Occupancy 76% 92%
Average Rate $3,600 $4,200
Monthly Revenue $109,000 $154,000
NOI $260,000 $490,000
Property Value $3.8M $6.8M

"As a first-time buyer, I needed a lender who would take a chance on me. Jaken saw my healthcare experience and helped me structure a deal that worked. Two years later, I've nearly doubled the property value." - First-Time Buyer, Peoria


Common Success Factors

What Makes Phoenix ALF Financing Successful

Factor Importance
Experienced Operator Critical
Strong Market Position Very High
Quality Property High
Adequate Equity High
Clear Business Plan High
Right Financing Partner Critical

Jaken Finance Group Advantages


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Case studies are based on actual client experiences. Specific details have been modified to protect client confidentiality. Results may vary based on individual circumstances.