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Disrupted Lending Environment Reveals FHA Opportunity

by Sarah Daniels June 5, 2023

Seniors housing owners that stabilized their properties after the pandemic are now faced with a new challenge: a spike in interest rates and a disrupted lending environment. The challenge arrives at a time when many borrowers need capital for maturing loans to escape variable-rate debt or to finance growth. The good news is that loans insured by the Federal Housing Administration (FHA) remain available and are giving eligible borrowers an attractive solution, say Lee Delaveris and John Randolph, seniors housing and healthcare specialists at KeyBank Real Estate Capital. Available in …

June 5, 2023

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Seniors Housing Grinding through Difficult Environment, But Hints of Recovery Emerge

by Sarah Daniels September 27, 2022

The health of seniors housing occupancy continues to recover, albeit slowly, amid challenges that refuse to relent. Rather than a one-two punch, the sector has absorbed a one-two-three combination: Occupancy-reducing COVID landed the first blow, labor shortages and inflating operational expenses delivered the second, and rising interest rates scored with the third, declares Charlie Shoop, a senior vice president with KeyBank’s healthcare group. A slumping economy may add a kick to the teeth for good measure. “There is a lot of noise in seniors housing financials right now, and few …

September 27, 2022

Morgin Morris Seniors Housing Interest Rates

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Higher Capital Costs are Latest Jolt to Seniors Housing Sector

by Sarah Daniels July 20, 2022

As if seniors housing developers and operators did not have enough difficulties rebounding from the pandemic, what with constrained occupancy, elevated expenses and staffing shortages plaguing the sector, they are now navigating an environment where the rising cost of capital is limiting their financial flexibility. While the 10-Year Treasury yield has retraded about 50 basis points from its recent peak of nearly 3.5 percent in mid-June, it is still twice as high as it was at the beginning of the year. Likewise, the secured overnight financing rate (SOFR) has shot …

July 20, 2022

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Investment, Financing in Seniors Housing Driven by Property Performance

by Sarah Daniels February 1, 2022

If there were one phrase to summarize the attitude of seniors housing investors and lenders in 2022, it would be “cautiously optimistic.” How quickly can the seniors housing industry hope to recover in the face of continued difficulties? What is likely to drive the financing and investment market? While difficulties due to COVID and labor shortages continue to create challenges in terms of immediate occupancy, strong demand fundamentals and a healthy appetite for seniors housing investments indicate a return to normality is possible in 2022, according to Brandon Taseff, senior …

February 1, 2022

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Seniors Housing Sales Pick Up as Recovery Gains Steam

by Sarah Daniels August 16, 2021

As the seniors housing industry slowly recovers from occupancy declines and disrupted operations due to COVID-19, investors are back in the market hunting for deals. Some $3.2 billion in seniors housing and care facilities traded hands in the second quarter this year, a year-over-year increase of a whopping 122 percent, according to Real Capital Analytics, which tracks real estate deals of $2.5 million or more. The jump in sales is hardly surprising when compared to the pandemic-riddled prior period. But unlike past downturns, the fact that seniors housing has become …

August 16, 2021

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Seniors Housing Represents Critical Piece of Housing Investment Future, Despite Challenges

by Sarah Daniels February 1, 2021

Amid the uncertainty of 2020, multifamily real estate portfolios as a whole outperformed expectations. However, seniors housing faced unique operational challenges during a pandemic that has been particularly devastating to older populations. The government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, were instrumental in keeping liquidity in the housing market. Entering 2021, the agencies continue their focus on mission-based lending to increase affordable housing, including in the seniors housing sector. Capital markets experts Angela Mago, president of Key Commercial Bank and Real Estate Capital and member of the executive leadership …

February 1, 2021