ALF Capital | Assisted Living Facility Financing & Investment

Loan Programs

Full-Spectrum Debt Financing
for Every Stage

From ground-up construction to stabilized permanent financing, ALF Capital arranges the right debt instrument for your project's lifecycle and risk profile.

Best Terms Available

HUD Section 232 / 223(f)

Long-term, fixed-rate, non-recourse FHA-insured loans for acquisition or refinance of existing assisted living, memory care, and skilled nursing facilities.

Loan Size$2M – No Max
TermUp to 35 Years
LTVUp to 80%
Rate TypeFixed, Non-Recourse
DSCR1.45x minimum

New Construction

HUD Section 232 Construction

FHA mortgage insurance for ground-up construction or substantial rehabilitation of assisted living and nursing facilities, converting to permanent at completion.

Loan Size$2M+
TermConstruction + 40 Yrs
LTVUp to 90% (new)
Rate TypeFixed, Non-Recourse

Short-Term Capital

Bridge / Interim Financing

Fast-close bridge loans for acquisitions, lease-up, repositioning, or value-add strategies before transitioning to HUD, agency, or bank permanent financing.

Loan Size$1M – $25M
Term12 – 36 Months
LTVUp to 70%
Close Time14 – 30 Days

SBA Programs

SBA 7(a) & 504 Loans

SBA-backed financing for acquisition, expansion, renovation, and working capital. Ideal for owner-operators purchasing their facility real estate with 10% equity.

Loan Size$350K – $5M (7a)
Equity Required10% Min
TermUp to 25 Years
UseAcquisition / Refi / WC

Construction

Construction & Mini-Perm

Conventional bank and CMBS construction loans with rolling mini-perm periods, designed for developers building purpose-built ALF or memory care projects.

Loan Size$3M – $50M
LTCUp to 75%
Term24 Mo + 2-yr Mini Perm
Rate TypeFloating / Fixed

Government

USDA Community Facilities

USDA Business & Industry and Community Facilities programs for rural ALF projects, providing low-rate financing for facilities serving underserved markets.

Loan Size$1M – $25M
TermUp to 40 Years
LocationRural / Small Town
RateBelow-Market

Deal Structuring

Understanding the Capital Stack

Sponsor Equity / GP

Highest Risk · Highest Return · Full Control

5–15%

LP Equity / Preferred Equity

Preferred Return 7–10% · Waterfall Upside

15–30%

Mezzanine Debt

Subordinate Debt · 10–14% Interest Rate

10–20%

Senior Debt (Bridge / Perm)

First Lien · Bank / Agency / HUD

50–70%

Government Programs / Grants

USDA · State Housing Finance Agency · HUD

0–15%

How ALF Capital Structures
Complex Deals

Most assisted living facility transactions require multiple layers of capital. Our team sources and coordinates the full capital stack — from senior debt through sponsor equity — so you close with the optimal combination of cost, leverage, and flexibility.

We specialize in layering government programs (HUD, USDA, state HFA subordinate loans) below the senior debt position, effectively reducing your equity requirement and improving overall project economics.

Coordinate senior debt, mezz, and equity in a single assignment
Layer HUD permanent financing behind bridge debt during lease-up
Combine SBA 504 with conventional first mortgage for maximum leverage
Structure OpCo / PropCo splits to optimize lender and investor returns
Identify state and local subordinate loan programs that reduce cash equity
Arrange GP / LP structures with preferred returns and promote waterfalls

Innovation in Capital Markets

Creative Debt & Equity
Structures

When conventional financing hits its limits, ALF Capital engineers hybrid instruments, alternative structures, and private capital solutions that traditional lenders won't consider.

OpCo / PropCo Split

Separate the operating company from the real estate holding entity. PropCo holds the real estate and leases to OpCo, enabling different lenders and investors at each level with distinct risk/return profiles.

Tax Optimization Lender Comfort Asset Protection

Sale-Leaseback + Mezzanine

Sell the real estate to an investor and lease it back on a long-term NNN basis. Layer mezzanine debt on the operator's business value and working capital, freeing equity for expansion.

Liquidity Event Mezzanine Debt NNN Lease

Preferred Equity Bridge

Accredited investors provide preferred equity at a 9–12% preferred return to bridge the gap between senior debt and sponsor equity. No dilution of control; investors receive a fixed preferred return plus a back-end profit participation.

Preferred Return Accredited Investors Reg D 506(b)

Debt Fund LP Syndication

Pool LP capital into a private credit vehicle that originates senior or subordinate debt secured by assisted living facilities. Investors earn fixed interest income; sponsor earns origination and management fees.

Private Credit Fixed Income Trust Deeds

Convertible Bridge Note

Short-term debt instrument with conversion rights. Lenders earn interest during the bridge period and have the option to convert to preferred equity at stabilization — aligning incentives and extending runway without early payoff.

Hybrid Instrument Convertible Note Flexible Exit

Family Office Co-GP Equity

Partner with a family office or HNWI as co-general partner. Longer investment horizons align with ALF project timelines; family offices provide equity and co-underwrite, sharing in both fees and carried interest.

Co-GP Family Office Long Horizon

Opportunity Zone Development

Site selection in designated Opportunity Zones enables investors to defer and reduce capital gains taxes while investing in new ALF construction. Creates a strong investor incentive to fund ground-up senior housing in underserved markets.

OZ Fund Tax Deferral New Construction

Private REIT / DownREIT

Structure an ongoing ALF portfolio as a private REIT, issuing operating partnership units to sellers and outside investors. Enables tax-deferred contributions, portfolio-level refinancing, and an institutional exit path.

Private REIT OP Units Portfolio Scale

Federal, State & Local

Government & Agency Funding Programs

ALF Capital identifies and layers federal, state, and local funding sources to reduce your equity requirement and enhance project feasibility.

Federal Programs

HUD Section 232 / ORCF Best Terms

FHA mortgage insurance for nursing homes, assisted living, and board-and-care facilities. New construction, substantial rehab, purchase, or refinance. Non-recourse, fixed-rate, up to 40-year term.

SBA 7(a) Healthcare Loan

Up to $5M for owner-operator acquisitions, business acquisitions, and real estate purchases. Low equity requirement (10%) and flexible terms make this ideal for first-time ALF owners.

SBA 504 Loan Program

Fixed-rate financing for real estate and equipment. Paired with a conventional first mortgage: borrower contributes 10%, SBA covers 40%, conventional lender covers 50%. Ideal for building purchase or construction.

USDA Community Facilities Rural

Direct and guaranteed loans for essential community services in rural areas and small towns. Assisted living and memory care facilities qualify. Below-market rates and up to 40-year amortization.

USDA Business & Industry (B&I)

Loan guarantees up to $25M for rural businesses including healthcare and senior care operators. Enables conventional bank financing at favorable LTV ratios with USDA credit enhancement.

HHS / ACL Grants (Title III-C)

Older Americans Act grants for nutrition, supportive services, and caregiver support programs. While not direct capital, these operational subsidies improve facility economics and DSCR for lenders.

State & Local Programs

State Housing Finance Agency (HFA) Subordinate Loans

Many states provide low-interest subordinate financing through their HFA for senior housing projects. These gap loans are typically below-market rate and can fill 10–20% of the capital stack, dramatically reducing sponsor equity.

CDBG & HOME Program Funds Income-Restricted

HUD Community Development Block Grant and HOME Investment Partnership funds available through municipalities and state agencies. Applicable where a portion of ALF units serve lower-income seniors.

Medicaid Waiver Revenue Enhancement

States with Home and Community-Based Services (HCBS) Medicaid waivers pay daily reimbursement rates for qualifying assisted living units. Structuring Medicaid-eligible units enhances NOI and improves debt coverage for lenders.

State Revolving Loan Funds & CDFIs

Community Development Financial Institutions and state revolving loan funds provide patient capital, often at below-market rates, for senior care projects in underserved communities or rural areas.

Historic Tax Credits (HTC) Adaptive Reuse

When converting historic hotel or institutional buildings to assisted living, 20% federal Historic Tax Credits combined with state HTCs can cover 25–45% of qualified rehabilitation costs — dramatically improving project returns.

Opportunity Zone Tax Incentive

Federal OZ designation enables capital gains deferral and partial elimination on reinvested gains. Many states add additional OZ incentives. ALF Capital maps projects against OZ census tracts to identify eligibility.

For Accredited Investors

Invest in Senior Housing Debt & Equity

ALF Capital provides accredited investors access to private credit and equity investments secured by or invested in assisted living facilities — combining financial returns with meaningful social impact.

The senior housing sector sits at the intersection of real estate and healthcare — offering recession-resistant demand driven by demographics, not economic cycles. By 2030, all Baby Boomers will be over 65, creating a structural supply-demand imbalance that makes senior housing one of the most fundamentally sound asset classes in private real estate.

ALF Capital structures LP investment opportunities in both the debt and equity of assisted living projects — giving investors the ability to match their risk appetite to a specific position in the capital stack, from first-lien private credit to value-add equity with promote participation.

Request Investor Package

Modern assisted living communities combine hospitality-quality design with personalized care

Private Credit / Debt Fund

8–10%

First-lien and subordinate trust deed investments secured by ALF real estate. Fixed income, quarterly distributions, 1–3 year terms.

Preferred Equity

10–13%

Preferred return plus profit participation at disposition. Priority over common equity. Typical 3–5 year hold with quarterly distributions.

LP Equity Syndication

15–20%

Target IRR on value-add acquisitions and new development. 70/30 GP/LP splits with 8% preferred return and promote waterfall. 5–7 year hold.

How LP Investments Are Structured

Minimum Investment

$50,000 – $100,000 per opportunity depending on deal size and structure. Debt fund minimums may start lower.

Investor Eligibility

All LP investment opportunities are offered exclusively to accredited investors under Regulation D Rule 506(b) or 506(c) exemptions.

Distribution Timing

Quarterly distributions for stabilized assets; semi-annual for development projects. Back-end promote and principal at disposition or refinance.

Tax Efficiency

Pass-through depreciation, cost segregation benefits, 1031 exchange eligibility on stabilized assets, and Opportunity Zone co-investment options available.

How We Work

From First Call to
Closing Table

Discovery Call

We learn your project, timeline, and objectives. Identify the right financing strategy and structure within 24 hours.

Term Sheet

Non-binding term sheet delivered within 3–5 business days. Outlines loan size, rate, leverage, structure, and fees.

Underwriting

Full financial and property underwriting. We work with your team to compile the package and manage lender diligence.

Commitment

Firm commitment letter issued. Coordinate legal, title, appraisal, Phase I, and third-party due diligence items.

Closing

Fund, close, and capitalize. Bridge programs close in 14–30 days; HUD programs in 90–180 days.

Illustrative Transactions

Representative Deal Profiles

The following transactions illustrate the types of financing structures ALF Capital arranges across the senior housing spectrum.

Acquisition Bridge

Assisted Living Acquisition

Southeast · 72 Units · Memory Care

$8.4M

Loan Amount

65%

LTV

18 Mo

Term

21 Days

HUD Permanent

Refinance to HUD 232(f)

Mid-Atlantic · 96 Units · Assisted Living

$14.2M

Loan Amount

78%

LTV

35 Yrs

Amortization

Fixed

Rate Type

Construction + Preferred Equity

Ground-Up ALF Development

Midwest · 120 Units · AL + Memory Care

$18.5M

Total Capitalization

72%

LTC (Senior)

$2.8M

Pref. Equity

10%

Pref. Return

All transactions shown are illustrative examples representing the types of deals ALF Capital structures. They do not represent actual completed transactions.

Get Started

Request Financing or
Investor Information

Whether you're seeking debt financing for a facility acquisition, exploring LP investment opportunities, or need help structuring a complex deal — our team responds within one business day.

Let's Structure Your Deal

ALF Capital works with assisted living operators, developers, investors, and intermediaries across the United States. We bring capital markets expertise to a complex and high-impact asset class.

✉

info@alfcap.com

☎

Phone

(800) ALF-CAPS

What to Prepare

→ Property address and unit count
→ Current occupancy and NOI (if existing)
→ Purchase price or project cost
→ Loan amount requested
→ Desired loan type and timeline

First Name *

Last Name *

Email Address *

Phone Number

Inquiry Type *

Estimated Deal Size

Property State

Project Description

Capital Solutions for Senior Housing Operators & Investors

Full-Spectrum Debt Financingfor Every Stage