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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www.seniorshousingbusiness.com 39 April 2018 n Seniors Housing Business WHO'S FIGHTING FOR YOU? Increase your census and maintain retention with the help of Patriot Angels! CALL TODAY! 844-757-3047 DID YOU KNOW? 41% OF YOUR CLIENTS ARE VETERANS OR WIDOWS! THERE ARE PENSION PROGRAMS, ALSO KNOWN AS AID AND ATTENDANCE, AVAILABLE TO WARTIME VETERANS AND THEIR SPOUSES! These programs can be used to offset the cost of senior living, making your community more affordable than ever! PENSION AMOUNTS VETERAN: $1,830.00 VETERAN & SPOUSE: $2,169.00 SURVIVING SPOUSE: $1,176.00 VETERAN MARRIED TO A VETERAN: $2,903.00 TAX FREE, MONTHLY DISTRIBUTION. Patriot Angels will ensure that your clients receive the assistance they deserve, every step of the way! Visit www.PatriotAngels.com and start the process with us now! Or give us a call at 844-757-3047! Patriot Angels does not sell financial products to help your clients qualify! Contact our support team at www.patriotangels.com for additional information. over $400 mil- lion in health- care transactions over the past few years. One way our volume has changed sig- nificantly is in the specific type of transaction. In January 2015, Midland States Bank acquired Love Fund- ing, bringing balance-sheet lend- ing to our clients. While we pre- viously only originated FHA transactions, since then we have originated over $100 million in healthcare bridge-to-HUD trans- actions, including construction/ mini-perms for assisted liv- ing. Midland continues to grow through acquisitions. McMeen: Our funded volume over the past three years was about $550 million. Our volume last year was about $75 million, including FHA. Last year was a very low vol- ume for us, which was driven by two factors. First, we had concerns about the skilled nursing market and the challenges around length of stay, reimbursement rates and labor costs, as well as the amount of new con- struction in assisted living and memory care. Second, the market has been very com- petitive, which, coupled with a conservative outlook, took us out of competi- tion on many transactions. In contrast to our $75 million volume last year, our volume in 2018 will exceed $160 million. I attribute that increase to some more opportunistic transactions in the skilled nursing sector and some very attractive bridge loans on strong performing seniors housing assets. It's worth pointing out that as a balance-sheet lender with a goal to grow our portfolio, we won't sacri- fice credit quality to attain volume targets. We have a long-term view. We would much rather miss on short- term volume goals than achieve those by sowing the seeds of loan losses. That would impair our ability to lend and serve our cus- tomers when liquidity leaves the market. Saunders: Our balance-sheet volume has averaged over $1 bil- lion the last several years, exclu- sive of $1.7 billion in loan syndi- cation volume in 2017. KeyBank's on-balance-sheet financing is com- plemented by off-balance-sheet volume (Fannie, Freddie, HUD, life companies), which exceeded $2.5 billion in 2017. That's up from $1.5 billion in 2016. KeyBank has been the No. 1 or No. 2 ranked seniors housing originator of Fannie Mae in five of the last six years and Freddie Mac eight of the last 10 years. We have been among the top three HUD lenders the last two years. Coiley: I can't get into specific numbers, but we are very active in the seniors housing market. How- ever, we have been more selective over the last two years and we've led some large syndicated transac- tions in the sector. Recently, we led a $136.9 mil- lion credit facility for Communi- Care Health Services Inc. in Ohio. We also served as co-lead arranger for $138.5 million in financing for Continuum Healthcare, which owns and operates skilled nurs- ing facilities in New Jersey and Pennsylvania through its affiliate companies. Leonard Lucas Love Funding Kevin McMeen MidCap Financial NorthMarq Capital arranged $29.3 million in financing for the construction of Quail Park at Shannon Ranch, a 120-unit community in Visalia, Calif., located between Los Angeles and the Bay Area. Living Care Lifestyles will operate the property upon completion in early 2019.

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