Seniors Housing Business

APR 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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38 www.seniorshousingbusiness.com Seniors Housing Business n April 2018 By Jeff Shaw We all know what borrow- ers look for in a lender. The best rates and terms. But what type of borrower is actually able to achieve those terms? What tells a lender which projects are likely to succeed? Seniors Housing Business asked a panel of top lenders in seniors housing to weigh in on the issues facing the industry today. SHB: What do you consider to be your specialty within seniors housing? Mike Taylor: First Midwest Bank specializes in providing financing for both for-profit and nonprofit seniors housing, includ- ing independent living, assisted living, memory care and skilled nursing providers. We provide tax-exempt loans, bridge-to-HUD loans, cash-out refinancings, con- struction and expansion financing, and working capital lines of credit. Leonard Lucas: We provide HUD-insured mortgages for age- restricted housing, assisted living/ memory care and skilled nursing. Our loans finance new construc- tion, substantial rehabilitation and acquisitions, as well as traditional refinancings. We are also very active in the financing of low-income housing tax credit (LIHTC) projects with a focus on age-restricted senior liv- ing. We are currently working with healthcare service providers with the goal of creating a model to finance affordable assisted living facilities. This is a part of the mar- ketplace that is vastly underserved and in need of attention. Our parent company is Midland States Bank. This relationship puts us in the unique position of being able to leverage Midland's balance sheet and offer bridge loans for properties that are not ready for HUD financing. Kevin McMeen: We cover the full spectrum, from age-restricted housing to skilled nursing facili- ties. We don't necessarily view ourselves as specializing in any particular area of the spec- trum. However, we do offer a broad array of products to the skilled nursing sector: working capital, bridge debt and per- manent debt through our FHA platform. Charlie Shoop: Our strength continues to be the breadth of Key- Bank's overall financing platform and our ability to tailor specific financing solutions to the bor- rower's needs. Financing includes both on- and off-balance-sheet solutions to include both project- based and multi-facility/institu- tional financings across all prop- erty types. Michael Coiley: We are primar- ily middle-market lenders. We like diversity of assets, so we're gener- ally involved in portfolio transac- tions. While we prefer stable oper- ating trends, we'll consider light turnaround and value-add oppor- tunities. Under the right circum- stances, we're also comfortable with cash-out transactions. One differ- entiator for CIT is that we finance the full continuum of healthcare by having our real estate, asset- based lending and leverage finance plat- forms all under one roof. This gives us a unique perspective of the entire healthcare ecosys- tem, which is critically important today given the continued inte- gration of care, especially across the post-acute spectrum. SHB: Please recap your seniors housing lending volume the past few years. If there has been a sig- nificant change year over year, what was the reason? Taylor: Over the last few years, First Midwest has completed over $1 billion worth of healthcare transactions. We have been very active in the seniors housing sector since 2013, and we continue to be quite active. Lucas: Love Funding has closed What Do Lenders Look for in a Borrower? n Q&A Capital providers share their insights on financing trends in the seniors housing industry. Roundtable participants Michael Coiley Managing Director, Healthcare Finance CIT Commercial Finance Division Grant Saunders Senior Vice President, Healthcare Group KeyBank Charlie Shoop Senior Vice President, Healthcare Mortgage Banking KeyBank Trace Wilson Director PGIM Real Estate Finance Leonard Lucas Senior Director Love Funding Mike Taylor Senior Vice President, Healthcare Lending Division Group Head First Midwest Bank Kevin McMeen President, Real Estate MidCap Financial Services Michael Coiley CIT Grant Saunders KeyBank LifeSpire of Virginia has started construction of a 166,590-square-foot expansion at Lakewood, a continuing care retirement community in Richmond, Va. A $24 million loan from SunTrust bank will help fund the expansion.

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