PulsePoints

I want to share my thoughts and feelings regarding my internship at Cambridge Realty Capital Companies. It was a unique opportunity, allowing me to touch on many different aspects of business and finance, which I will elaborate on below.

Working at Cambridge was a wonderful experience, educational and enriching. During my employment I gained valuable knowledge of financial analysis by working on a variety of different transactions. I also had the opportunity to truly experience client interaction by directly communicating and building relationships with clients.

Cambridge is a very resourceful company where you can sharpen your capabilities and learn a lot about the senior housing and healthcare industry. Everyone at the company was always very friendly and helpful. It was a great pleasure to work as part of a very successful and special team.

What is unique about Cambridge is the ability within their internship program to take on real-world experiences. The job did not solely involve the old-fashioned connotations of an internship such as copying, filing, and getting coffee, but instead offered experience on real transactions by allowing me to speak with clients, address complex and challenging assignments, and expand my horizons and get a return on my investment of time. In fact, the experience at Cambridge may have served me better than some of the current classes I am taking at graduate school.

Without equivocation, I can highly recommend the internship program at Cambridge. Though it is a very competitive opportunity, it is well worth going through Cambridge’s thorough interview process because the resulting opportunity “at the end of the rainbow” is well worth it.

Selin Cebeci
Loyola University, MBA 2012

The holidays are well and truly over, and you’re now faced with the reality of a new year and new challenges. As you search for the right financing for a senior housing facility, you may become frustrated by lenders’ and investors’ inability to find the right solutions for you, thanks to an overall lack of understanding about Senior Housing and Long-Term Care by the investment community.

Don’t become frustrated! Remember that all financial and investment firms are not alike. Cambridge is dedicated to senior housing and long-term care, so we understand your challenges.

We have completed over 300 separate real estate debt and equity financial transactions in excess of $3 billion dollars on senior housing and long-term care facilities, and we’ve been one of the nation’s leading HUD 232 senior housing and long-term care lenders for over the past 10 years. We also have our own private equity fund to help you buy or lease a facility you may currently operate.

We’re happy to work with you on finding solutions to your financing needs and help you cross one of those challenges off of your New Year’s list!

The Congressional  “supercommittee” made up of Democrats and Republicans has been unable to come up with a budget savings solution of $1.5 trillion over the span of ten years. If no agreement is reached this week,  $1.2 trillion in spending cuts will be automatically enacted on hundreds of programs, beginning in 2013. A few programs have been exempted from the automatic cuts, such as Social Security, the Medicaid health program for the poor, Medicare health benefits for the elderly, veterans’ pensions and many programs for people with low income.

These unexpected budget cuts result in an unpredictable savings plan for both nursing homes and assisted living facilities. Even though Medicaid will be exempt from the automatic cuts if an agreement is not reached, Medicare will experience a 2% cut in payments to nursing homes and other health care providers. Although 2% does not seem like very much, this will cost each nursing home an average of $50,000, which is the equivalent of two direct-care workers. Since the automatic cuts won’t be enforced until 2013, lawmakers still have the ability to pass legislation decreasing the reductions in 2012, so this is a worst-case scenario, but the cuts remain a possibility if Congress cannot devise an alternative solution.

Cambridge Chairman Jeffrey A. Davis will participate in a panel discussion on healthcare finance during the annual HCap (Healthcare Capital) Conference scheduled December 7-9 at the JW Marriott Hotel in Washington, D. C.

In the session five panelists are slated to discuss Healthcare Finance 202: A CEO Primer. Joining Mr. Davis on the Dec. 8 panel will be Tim Ashe, Frazzi Associates; David Allen, NXT Capital; Greg Pachus, Silicon Valley Bank; and Mark O’Brien, Gemino Healthcare Finance.

HCap is a national venue for healthcare providers and capital to meet, do business and learn about policy and entrepreneurial trends. Conference participants gain insights from policy insiders and visionaries on big picture trends affecting the entire healthcare system.

“The conference provides an opportunity for conference participants to meet leading players and strengthen access to capital. Participants network with CEOs and CFOs from other healthcare provider segments.” Mr. Davis said.

Keynote speaker for the HCap Conference will be Congressman Paul Ryan (R-WI), Chairman of the House Budget Committee. Rep. Ryan will discuss the controversial “premium support plan” he believes will transform Medicare into a more economically sustainable model.

Cambridge Realty Capital Companies has arranged a $4.4 million HUD Lean first-mortgage loan to refinance the Highland Nursing and Rehabilitation Center, a 162-bed skilled nursing home in Kansas City, Mo.

Cambridge Chairman Jeffrey A. Davis said the fully amortized, 30-year term loan was arranged for the borrower, a Missouri limited partnership. Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-approved loans, used HUD’s Section 232 pursuant to Section 223(a)(7) program to close on the property.

The interest rate was not disclosed.

Cambridge Realty Capital Companies has closed on a $2.48 million HUD Lean first-mortgage loan to refinance Fair Oaks Nursing and Rehab Center, a 78-bed skilled nursing home in South Beloit, Ill.

Cambridge Chairman Jeffrey A. Davis says the fully-amortized, 30-year term first-mortgage loan was arranged for the owner, an Illinois limited liability company, by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-approved HUD loans. The property was refinanced using the HUD Section 232 pursuant to Section 223(f) funding program. The interest rate was not disclosed.

As you may have read through our tweets (@cambridgeintern) about today’s historically low interest rates, Cambridge has been encouraging you to think about refinancing. If you have an existing HUD healthcare loan, you can save big and improve the quality of your facility if you take advantage of these rates.

The process is much more uniform and user-friendly than it used to be, thanks to HUD Lean. And HUD’s 223(a)7 program provides a way to get these existing loans that are beyond the lockout period into the refinance queue so borrowers can take advantage of the low rates now.   Healthcare property owners can refinance the full, original loan amount, which makes additional funds available to use for capital improvements to the property.

HUD loans still require borrowers and lenders to provide the right documents and meet all the required loan criteria.  But for borrowers who have been through the process once already, this should be a lot easier.  So it makes sense for healthcare owners to talk to us, since we are an FHA-approved HUD lender, to learn how refinancing your existing loans can put more money into your pocket.

Cambridge Realty Capital Companies has closed on a $9.06 million HUD Lean first-mortgage loan for Seminary Manor, a 121-bed skilled care nursing home in Galesburg, Ill.

Cambridge Chairman Jeffrey A. Davis said the fully-amortized, 35-year term loan refinanced the not-for-profit property for the owner, an Illinois limited liability company. Underwriting for the loan was Cambridge Realty Capital Ltd. of Illinois, the FHA-approved Cambridge business that specializes in underwriting HUD loans.

The property was refinanced using the HUD Section 232 pursuant to Section 223(a) 7 funding program. The interest rate was not disclosed.

With our hot pretzel order underway for the biggest senior housing and healthcare deal-making conference of the year, we want to remind you to give us a call today to schedule a time to meet and greet us during NIC, being held September 21-23 at the Waldman Park Hotel in Washington D.C.

Cambridge is seeking to strengthen relationships during the conference. We don’t want you to miss the opportunity to talk to us in person about how we can help you save money in the midst of financial strains. Cambridge’s experienced team will be gathered in our private meeting room suite, waiting with coffee, tea and snacks, ready to discuss your senior housing and healthcare financing projects. Get in touch with us today to set up your meeting!

While it has been difficult for lenders to provide funding for new construction, refinancing existing facilities has proven to be quite beneficial for borrowers in the senior housing industry, due to historically low interest rates and government service entity funding options such as HUD, which provide very favorable terms to qualified borrowers.

Since experience varies between senior housing operators, knowing the basic steps Cambridge takes to close a deal can be very helpful. We ask that our clients provide us with some necessary information to determine whether or not we can proceed with a transaction.  On our website, clients can utilize our InfoCenter to find Information Request Forms and Checklists tailored specifically to the programs we offer.

Once submitted, the information is analyzed, and we underwrite the transaction. After determining if the transaction can support the requested loan amount, a Letter Of Intent is issued. Upon execution of our Letter of Intent, we will issue a quote; if the client accepts the quote, the application materials are then compiled and the transaction, whether HUD or conventional, begins to move forward on the path to closing.