What a difference a few decades makes.
Flash back to the closing days of the last century. At this time, lenders weren’t exactly tripping over themselves to get in on the senior housing/healthcare action as they are today, says funding expert Sampada D’silva.
Ms. D’silva is Managing Director of Chicago-based Cambridge Realty Capital Companies, one of the nation’s leading senior housing/healthcare lenders. Lenders were a lot more risk averse as the 1990s were winding down, especially when it came to higher acuity properties like skilled nursing homes, she said.
At the time there was growing awareness of the risks involved. Nursing home borrowers were unable to make payments because reimbursements from both federal and state programs were falling short of expectations.
With assisted living and other types of senior products, there was the issue of over-saturation in the market, which made it more difficult for properties to stabilize.
“As a result, many lenders didn’t know how to analyze the credit-worthiness of these businesses,” she noted.
Ms. D’silva says clients appreciate the fact that Cambridge made the effort to work this out and was there for them when there were not a lot of funding options available.
“The company remained fully committed to the senior housing/healthcare industry because management recognized that the market was cyclical and always believed that capital would be there at some point.
“Over the years, Cambridge has invested significant time, energy and resources with the goal of obtaining knowledge about the various senior housing/healthcare property types. We’ve learned a great deal along the way.
For example, we thoroughly understand how Medicaid and Medicare systems work and how legislation affects the way these properties make money,” she said.