New news from this week...
WINSTON-SALEM, N.C., July 13 /PRNewswire/ -- Diversified Senior Funding, a wholly-owned subsidiary of Diversified Senior Services, Inc. (Nasdaq: DISS), today said it has arranged the financing for two 60-unit assisted living facilities in North Carolina to be developed and managed by parent Diversified Senior Services, a senior living and assisted living company. Funding for the two projects, raised in behalf of the non-profit North Carolina Housing Foundation, owners of the properties, totaled $6 million. PW Funding of Mineola, N.Y. was the lender and FHA mortgagee.
Bernard P. Gawley, president of the funding company, said he believes it is the first time in U.S. history that a non-profit project sponsor was able to utilize a third party developer to develop an assisted living project financed by an FHA insured mortgage loan.
He said the unique nature of the financing was made possible by the fact that the projects were designed so that a minimum of 60% of each project's residents will be at the low income level in accordance with financing guidelines developed by the Department of Housing and Urban Development.
Kenneth B. Compton, president of the North Carolina Housing Foundation, said "it is very satisfying to find a for-profit company willing to develop housing to serve low-moderate income families in North Carolina."
Gawley noted that everyone at every level of Diversified Senior Services is "obviously quite proud of accomplishing a 'first' in the financing of assisted living facilities," adding that "we believe we will be able to enlarge and accelerate our development program utilizing more FHA insured mortgage financings in the future."
William Benton, chief executive and founder of Diversified Senior Services, said "the profile of the financing mirrors our operating philosophy which mandates us to target our assisted living and senior living facilities to the low-to-moderate income frail and elderly. It is our strong belief that this demographic group is the most underserved in the health care industry."
All of Diversified's independent and assisted living facilities are located in small southeastern communities where little if any competition exists. "Thus," Benton said, "our rent-up rate is well ahead of industry standards and our residents, in addition to finding our facilities affordable as well as comfortable, are able, for the most part, to continue meaningful relationships with their families and friends who reside nearby."
The two facilities, now in early stages of construction, are located in the relatively small North Carolina communities of Cherryville (population: approximately 4,760) and Rocky Mount (population: approximately 54,220).
Diversified Senior Funding, located in New York City, provides financing services to the senior housing industry.
Certain of the above statements may be forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports. SOURCE Diversified Senior Services, Inc.
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/CONTACT: Bill Benton, CEO, or Jody Ragan, Investor Relations, both of Diversified Senior Services, 336-724-1000; or Paul Keil or Tinker L.D. Andrews, both of ACC Communications LLC, 805-693-8947, for Diversified Senior Services/ -- HSTU006 -- 0151 07/13/99 08:29 EDT prnewswire.com Copyright PR Newswire 1998. All rights reserved.
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