Refinancing a Drug & Alcohol Rehabilitation Facility-Hollywood, Florida
Case Study
01. The Challenge
A foreign national client came to us seeking to refinance a stabilized drug and alcohol rehabilitation building in Hollywood, Florida. The property had been operating successfully for several years, generating consistent income-by every measure, a performing asset. Yet despite its strong fundamentals, the owners could not secure financing through their existing bank. The reason: the property’s use as a substance abuse rehabilitation facility.
This deal presented two significant hurdles that cause most lenders to walk away before the conversation even begins.
Hurdle #1 — Foreign National Borrowers
The owners were foreign nationals, a flag that immediately narrows the lender pool and raises compliance concerns around ownership structure, documentation, and banking relationships. Many lenders simply do not have a foreign national lending program, and those that do often require extensive documentation that borrowers are not prepared to navigate alone.
Hurdle #2 — Rehabilitation Facility Occupancy
Drug and alcohol rehabilitation facilities are a property type that the majority of conventional and institutional lenders categorically decline, regardless of the asset’s financial performance. The perception of elevated operational and reputational risk causes most lenders to pass — even on stabilized, income-producing properties like this one.
02. Our Approach
Rather than letting either obstacle become a deal-breaker, we engineered straightforward solutions for both.
Solving the Foreign National Issue
We structured the ownership through a single-asset entity — a clean, lender-friendly U.S. LLC holding only this property. This approach eliminated ambiguity around ownership and gave the lender a clear, domestic legal structure to underwrite against. We also guided the clients through establishing a U.S. bank account, satisfying lender requirements for domestic financial ties and streamlining the verification process considerably.
Solving the Property Type Issue
We addressed lender risk perception around the rehabilitation facility occupancy by adjusting the loan-to-value ratio from 70% to 60%. This modest reduction gave the lender the additional equity cushion they needed to move forward with confidence on a non-traditional asset class — turning a likely decline into a closed deal.
03. Documentation Required
One of the keys to closing this deal efficiently was keeping the documentation requirements lean and practical. We required:
• Proof of a single-asset U.S. entity
• Ownership details and background A U.S. bank account
• 3 months of bank statements
• A borrower-provided income statement
No tax returns. No lengthy institutional checklists. Just the right documentation to give the lender what they needed to make a confident credit decision.
04. The Lender
We placed this loan with Woodland Funding, a lender with the flexibility and expertise to work outside the rigid parameters of conventional banking. Where the borrowers’ own bank saw only a decline, Woodland Funding saw a stabilized, income-producing asset with a clean ownership structure and a borrower committed to the deal.
05. The Result
The refinance closed in just 50 days at a 30-year term loan at 9.25% — giving the borrowers long-term certainty and the capital they needed, on a deal their own bank had turned away.
By combining thoughtful ownership structuring, disciplined loan sizing, and the right lending partner, we delivered a solution that worked for both the client and the lender — on a deal most brokers would have passed on entirely.
06. Key Takeaways
The refinance closed in just 50 days at a 30-year term loan at 9.25% — giving the borrowers long-term certainty and the capital they needed, on a deal their own bank had turned away.
By combining thoughtful ownership structuring, disciplined loan sizing, and the right lending partner, we delivered a solution that worked for both the client and the lender — on a deal most brokers would have passed on entirely.
Stabilized assets can still face financing challenges
Based on property type and borrower profile-the numbers alone don’t guarantee approval.
Foreign national borrowers have options
When the right ownership structure and documentation are in place.
Niche property types require niche lenders.
Knowing who to call — and how to present the deal-makes all the difference.
Simplicity wins
Streamlined documentation package and a straightforward structure closed this deal in 50 days.
DEAL SNAPSHOT
Property Type
Drug & Alcohol Rehabilitation Facility
LOCATION
Hollywood, Florida
Loan Amount
$350,000
Loan Type
30-Year Term Loan
Loan-to-Value
60%
Interest Rate
9.25%
Lender
Woodland Funding
Time to Close
50 Days
Woodland Funding · Private Lending Solutions · This case study is provided for informational purposes only and does not constitute an offer to lend. All loans subject to underwriting approval
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