When it comes to getting a deal done, Cambridge Realty Capital shines in three major areas, according to satisfied clients: savvy investing, a positive reputation with HUD and a widespread and diverse network of operators and financial contacts within the senior care industry.
“Primarily, Cambridge is focused on [investing in] properties with turnaround potential,” notes Jacob Gehl, Founder and Managing Partner of Blueprint Healthcare Real Estate Advisors and a client of Cambridge Realty Capital. “Cambridge Founder Jeff Davis is an exceptional deal maker and has put together a great roster of people. He is always looking for situations where he can add value.” One of those savvy investments was four Wisconsin facilities which it had purchased for $4.8 million. The properties were underperforming and neglected. Over the next eight years, Cambridge worked at rehabilitating them, eventually doubling their combined occupancy before selling to Summit Healthcare REIT of Lake Forest, Calif for $18.4 million.
Cambridge’s investment strategy includes direct property acquisitions, joint ventures and sale leasebacks. Cambridge’s investments are diverse and include assisted living, skilled nursing and memory care facilities. Every potential investment is carefully analyzed and thoroughly researched beforehand to determine its viability and profitability. The aforementioned examples are not anomalies, but representative of Cambridge’s savvy when it comes to investing.
Gerald Nudo of Marc Realty in Chicago also attests to Cambridge’s almost uncanny ability to identify properties with turnaround potential and rehabilitate them effectively. Nudo has worked with Cambridge on a number of property acquisitions over the last two decades. The acquisitions all were plagued with problems such as low-occupancy, lapsed licensing and outdated facilities. Nudo has been impressed by Cambridge’s ability to find creative and timely solutions to turn those investments around. “Jeff is a very talented and hard-working guy. There are always issues with the properties we purchase but he finds a way to make thing work,” Nudo states.
Reputation with HUD
If you have ever wondered why it matters who you work with when seeking HUD funding (after all, Cambridge is but one of many FDA-approved HUD lenders), look at the numbers.
Cambridge has consistently ranked among the country’s top ten FHA-insured HUD lenders over the last 15 years. This is not insignificant, given that there are approximately 70 HUD-approved lenders across the US. Every year HUD releases statistics ranking all HUD lenders in several categories, including FHA closings, FHA firm commitments and a number of other categories. Cambridge consistently ranked in the top five to ten and ranked number eight overall for the year 2017.
Then again, numbers don’t tell the whole story: people do. Ben Parsons, General Counsel and Vice President of Continuing Healthcare Solutions of Ohio worked with Cambridge on a HUD loan application for three properties. It was the first time Continuing Healthcare Solutions had worked with Cambridge, and Parsons was very pleased with both the process and the outcome. ‘[Cambridge] was responsive and organized, and they pulled everything together,” he recounts. Parsons believes that the smooth and surprise-free nine-months that it took to close the deal had everything to do with Cambridge’s extensive HUD experience.
Relationships with Investors, Brokers and Other Stakeholders
Cambridge has a national origination office in Los Angeles, and numerous industry relationships nationwide. Cambridge has a large and diverse network of contacts that includes real estate brokers, health care management companies and senior living and health care facility owners. Many of these relationships span a decade or longer.
One such long standing relationship is with Tom O’Niones, founder of Transcendent Healthcare. A self-starter and young entrepreneur, O’Niones sought out Cambridge in the early 2000s for help breaking into the healthcare industry. Cambridge took a chance on the youthful, untested facility owner hopeful and it proved to be profitable for both parties. Transcendent and Cambridge went on to work together again in the years that followed.