Construct with HUD
With all the construction going on today in the seniors housing and care industry, how are these developers financing their projects? Once you get past the longer lines and list of regulations, HUD has a few attractive options. Walker & Dunlop is one lender that has worked with HUD a good amount recently to fund new construction and expansion projects for borrowers across the country. One such example is a $5 million construction/permanent loan through HUD’s 232 program for TDK Companies to build a 36-unit assisted living/memory care community on its existing 82-unit AL campus is Murfreesboro, Tennessee. Primarily a build-and-hold multifamily developer, TDK forayed into the seniors... Read More »Average SNF cap rate falls below 12%
Although in the four quarters ending Q3:15 the average assisted living cap rate rose slightly (5 basis points) and the average independent living fell by just 20 basis points, we saw a much bigger shift in the average skilled nursing facility cap rate, which fell 60 basis points from 12.4% in 2014 to 11.8% in the four quarters ending Q3:15. That is the lowest average SNF cap rate we have seen in any four-quarter period. Conversely, and understandably, the average price per bed for SNF transactions increased by $3,300, for a 4.3% change. So as the quality of facilities sold increases, driven largely by a higher Medicare census, or at least potential for it, and cost of borrowing remains... Read More »Slumping Ventas
Investors did not like what they heard about Ventas for the third quarter, despite an earnings beat. So, when we first heard that Ventas was announcing that third quarter earnings were going to exceed estimates, we thought, ho-hum, so what else is new, they always beat estimates. The press release was glowing about all the accomplishments during the quarter. They revised guidelines for the full year slightly upward. I didn’t get a chance to listen in live to the earnings call, but I did notice how the share price dropped by 5%. What, on an earnings beat? And then it dropped a little more. It was the revenue miss and concerns about growth that sent investors to the exits. Since then, there... Read More »HUD’s top lenders
We will be profiling the top 10 HUD LEAN lenders in the coming issue of The SeniorCare Investor, but here is a little snapshot. We already mentioned last week that Lancaster Pollard finished well ahead of the pack, with 65 transactions totaling $531 million. Coming in second place, dollar-wise, was Housing & Healthcare Finance. The Chevy Chase, Maryland-based firm closed 22 transactions, for a total of $264.2 million. Loan sizes ranged from as low as $3.96 million up to $28.78 million. Coming in third was Capital Funding, which actually closed 28 loans (second place) totaling $257.8 million. Good job to all. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
