From The Magazine

High interest rates, rising expenses curb transactions, cast spotlight on bridge loans. By Matt Valley and Jeff Shaw To borrow a baseball phrase, the rallying cry among lenders in the HUD Lean Section 232 mortgage insurance program used to finance nursing homes and assisted living facilities is “Wait ’Til Next Year.” The combination of rising interest rates and volatility in the capital markets has led to a slump in deal volume, but lenders see this situation as a temporary setback.  Transaction activity has actually been waning the past few years. …

By Matt Valley March is notoriously volatile weather-wise, but March 2023 will long be remembered as a particularly stormy month for the financial markets. The collapse of two banks over a 48-hour period early in the month hit like a bolt of lightning. Santa Clara, California-based Silicon Valley Bank, a lender to technology startups, failed following a bank run during which depositors and investors withdrew $42 billion on March 9 alone. On March 10, the bank was placed under the receivership of the Federal Deposit Insurance Corp. (FDIC). Two days …

The Fed’s aggressive push to tamp down inflation through higher interest rates has temporarily sidelined some lenders, while creating opportunities for others. By Jeff Shaw A lot has changed in a year, especially when it comes to the capital markets for seniors housing. “If you look back just a year ago, you had banks that were awash in deposits, had strong liquidity levels, strong capital positions and were really focused on robust loan growth. The bank balance sheet growth at that time was near historical levels,” said Zach Shulkin, vice …