Seniors Housing Business

APR 2018

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

Issue link:

Contents of this Issue


Page 41 of 48 41 April 2018 n Seniors Housing Business realize, however, that supply and demand vary greatly on a market- by-market basis. Coiley: Yes, we do. Everyone appears to be chasing the Baby Boomer aging curve. But we could easily see overcapacity if market demand is not carefully analyzed and monitored. SHB: What are some areas in seniors housing where borrowers are currently underserved? Taylor: I don't think there are any areas that are currently under- served in the space. Over the course of the last few years, there have been a number of new capi- tal providers that have entered the space. As a result, providers today have greater access to capital than ever before. Lucas: The development of affordable assisted living presents many challenges. The capital mar- kets have yet to adequately address these needs. We are currently work- ing on a model that will provide financing for the development of affordable assisted living. McMeen: There is so much capi- tal searching for opportunities in this market that is difficult to say any part of the seniors housing industry is underserved. There may be people who say there are sectors that are underserved, but I would argue that is based on out- sized expectations regarding lever- age, pricing or a combination of both. Saunders: In the past decade, seniors housing has become an increasingly respected asset class and has attracted more institu- tional equity and debt capital from a variety of sources. However, the industry has generally focused on the higher-end, private-pay market and not on affordable or moderately priced housing mod- els. This is especially true, given the anticipated demographics and ever-increasing needs for seniors housing within the country. SHB: What does your ideal seniors housing development look like? For example, what part of the continuum of care does it include? How many units does it have? Taylor: If I was to construct a new building, it would have the full continuum of care. My ideal facility would have 120 to 150 units comprised of approximately 20 to 30 skilled nursing beds, 10 to 20 memory care units, 20 to 30 assisted living units, and the remainder in independent living. It would be scalable such that each level of care could be expanded as future demand increases. With this size building, I feel there is less risk. This provides flexibility should the market change, or you have unexpected competition enter the market. In addition, I see tremendous value in allowing residents to age in place, and to not be forced to move. Lucas: The ideal senior housing development is set on a campus that provides a full continuum of care, from age-restricted housing to independent living, assisted liv- ing, memory care, skilled nursing and hospice. The older people get, the more of a challenge it is to move from one location to another. This applies to individuals and espe- cially to couples. Couples do not decline in health at the same rate. It is important that they be able to live in a community that meets the healthcare demands of each while allowing them to be in close prox- imity to one another. McMeen: We would prefer assets with some sort of care con- tinuum that feature more than 60 units but less than 200. Shoop: Generally, we focus on rental campus communities where the community can offer various services to allow residents to age in place. This ranges from freestand- ing villas to independent living and assisted living/memory care, all within a campus that typically offers over 150 units combined. Coiley: We generally leave that analysis to the borrower or inves- tor. Our role is to provide com- prehensive financing and bank- ing solutions that help finance these projects when they make good economic sense. We have the expertise needed to tailor financ- ing to meet the needs of the bor- rower and we're not afraid of com- plex deals that may be difficult for other lenders. n Tim Fossa, Senior Vice President Group Head, Healthcare Banking. With more than 27 years of commercial banking experience, Tim focuses on the healthcare and senior living lending market. Byline Bank and Tim bring a strong capital base and financial acumen to meet your banking needs. Contact Tim today p: (312) 660-5812 c: (630) 886-1908 180 N. LaSalle Street, Suite 300 Chicago, IL 60601 National Senior Housing Lender ©2018 Byline Bank. Member FDIC. BMO Harris Healthcare Real Estate Finance, as sole lender, provided a $35.3 million loan for the construction of Grand Living at Tamaya, a 171-unit seniors housing community in Jacksonville, Fla. The borrower is a partnership between Ryan Cos. and Grand Living. The property will offer independent living, assisted living and memory care.

Articles in this issue

Links on this page

Archives of this issue

view archives of Seniors Housing Business - APR 2018