ROANOKE, Va. — M&T Realty Capital Corp. has provided a $12.9 million Fannie Mae loan to refinance a 55-unit seniors housing property in Roanoke. The 10-year loan features a fixed rate of 3.75 percent and a 30-year amortization. Matthew Pipitone of M&T Realty Capital Baltimore office, in collaboration with Nick Gent of M&T Bank’s Washington, D.C. office, led the transaction. The borrower and name of the community were not disclosed.
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The Federal Housing Finance Administration’s (FHFA) recent decision to maintain healthy multifamily purchase volumes for Fannie Mae and Freddie Mac calmed market uncertainties over capital availability for the remainder of 2019 and 2020, which had increased loan spreads by 30 to 50 basis points over the summer. The decision also addressed similar uncertainties in the seniors housing industry and, to some degree, growing concerns over affordability. Both were hot topics at the National Investment Center for Seniors Housing and Care’s fall conference in mid-September, and M&T Bank’s healthcare banking and …
Relationship Lending Gains Importance Amid Choppy Market Conditions, Say M&T Bank Executives
by Jaime Lackey
The NIC Fall Conference is known as the place where deals get done. About 80 percent of attendees either receive or deliver capital as a result of the meetings they participate in at the conference, according to the National Investment Center for Seniors Housing & Care (NIC). That finding stems from a survey of attendees conducted annually by the Annapolis, Maryland-based nonprofit organization. The conference also serves as a platform for thought leadership and idea sharing. Some key topics addressed at this year’s conference — which took place Sept. 11-13 …
Next week, the Center for Medicare and Medicaid Services (CMS) is scheduled to roll out a new reimbursement model that could significantly affect the cash flow and financial flexibility of skilled nursing facilities. Under the program, known as the Patient-Driven Payment Model (PDPM), CMS is linking skilled nursing facility (SNF) reimbursements to the value of care given. When it goes into effect on October 1, PDPM will replace the current model that pays SNFs based on the volume of services rendered. One of PDPM’s primary goals is to encourage activities …
Coming out of the financial crisis, cash-out financing became a term that virtually no commercial real estate sponsor dared utter. Lenders and regulators took a dim view of the practice, which, as a product of lax underwriting standards that helped fuel the crisis, too often allowed borrowers to retain only a sliver of equity in their properties. And few landlords had the capacity to strike cash-out deals anyway, given the drop in commercial property values. As commercial real estate values have recovered, however, lenders have become agreeable to making cash-out …
Labor shortages, rising interest rates and other challenges confronting seniors housing operators have failed to blunt the bullish outlook for industry growth. While the availability of debt and capital to fund that expansion has improved over the last several years, it continues to be an area of concern. In particular, developers are placing an emphasis on finding experienced and relationship-driven financing partners that can properly assess a borrower’s needs, match them with the best possible solution, and react quickly to regulatory changes or other unforeseen circumstances that may impact pro …