The current development cycle could prove to be a windfall for senior housing/healthcare operators who know how to interact with developers, funding expert Jeffrey A. Davis believes.
Mr. Davis is Chairman of Chicago-based Cambridge of Cambridge Realty Capital Companies. The company is one of the nation’s leading senior housing/healthcare lenders and acquires properties through its Cambridge Investment and Finance Company subsidiary.
“Thanks to the industry’s favorable demographics, the new development wave that arrived with increasing force this year should continue to gather momentum in 2019,” he predicted, adding: “With so many developers looking to explore development opportunities in the industry, savvy and entrepreneurial operators should be in great demand.”
The other big winners of the new development trend will be consumers who occupy new, state-of-the-art facilities. Generally speaking, Mr. Davis says most senior housing occupants prefer new versus old.
When financing new projects developers must have site control, schematic plans, completed feasibility studies, proformas, development experience and sufficient equity to balance a construction loan. Those approaching Cambridge for sponsor equity need all of these things plus a willingness to participate in down-the-road discussions about limited partnership capital with an equity investor.