Senior Housing and Healthcare Developers Maintain Demand for Loans
(CHICAGO, IL) -- Senior housing and health care facilities developers continue to keep up demand for FHA-insured loans and other funding vehicles, reports Chicago-based Cambridge Realty Capital Cos.
"In a year in which stocks imploded and the credit markets lost their way, efforts by senior housing/healthcare borrowers to improve the financial underpinning for their businesses never waned.," says Jeffrey A. Davis, chairman of the 26-year-old, privately owned real estate investment banking firm.
Cambridge processed 333 loan origination requests in 2008, a total only slightly less than the 357 requests reviewed a year earlier, Davis points out.
"But the total dollar volume for all processed requests in 2008 was somewhat higher, $4.7 billion compared with $4.3 billion a year earlier," he says. "And the total number of beds/units was also up, from 53,228 in 2007 to 55,614 a year later."
Davis acknowledges most lenders close a relatively small percentage of loan origination requests received, but believes it's useful to track this information as an indication of market directions.
"Competitive interest rates contributed to relatively strong demand throughout the year and remain in place as the New Year begins, "he notes.
"In the final quarter of 2008, the economic news was particularly bleak and origination requests were down 11 percent, from 110 in 2007 to 97 in 2008. However, dollar volume was not off dramatically, falling from $1.30 billion in the fourth quarter of 2007 to $1.23 billion for the same period in 2008."
Cambridge has three business units: FHA-insured HUD loans, conventional financing and investments and acquisitions.
Davis says Cambridge is one of the nation's leading senior housing and healthcare debt and equity capital providers with more than 300 closed transactions totaling more than $2.75 billion since the mid-1990s.