From The Magazine

As borrower interests change quickly in the post-COVID world, capital sources adapt to their needs. By Jeff Shaw Many factors go into a seniors housing investor or developer’s need for capital. Considerations such as occupancy at existing communities, construction costs for new buildings, interest rates, inflation and capitalization rates all play a critical role in how companies choose to invest in the sector. When those factors push the industry in one direction, causing a trend, lenders and borrowers come together to see if they can make a project work for …

Bridge lending spikes as owners and operators look for short-term solutions coming out of the pandemic, which could portend an increase in permanent and agency loans. By Jeff Shaw Although senior living occupancies remain low and have been slow to recover in the wake of the COVID-19 pandemic, many owners and operators are looking to execute long-term business plans. Whether for renovations, expansions or simply operating capital to ride out the pandemic’s long-term effects, borrowers need bridge loans to achieve this goal. Average private-pay seniors housing occupancy increased 20 basis …

Mounting financial pressures on operators, combined with rising interest rates, leads to protracted transaction process. By Matt Valley A significant drop-off in the production of HUD 232/223(f) loans — popular with borrowers acquiring or refinancing skilled nursing, assisted living and memory care facilities — has lowered expectations for overall deal volume in the HUD LEAN Section 232 mortgage insurance program for fiscal year (FY) 2022.  The consensus among HUD lenders is that the total dollar amount in annual loan closings will fall short of the $3.9 billion notched in FY …