Capital access always is a top-of-mind concern for operators looking to grow or renovate. But finding money is not much of a challenge these days.
At least, that’s what Capital One’s annual survey strongly suggests. Only 4% of the respondents selected capital availability as their biggest financial worry. That’s quite a contrast from a decade ago. During the Great Recession, many lenders essentially stopped making deals.
When asked to name the type of financing that would be the most important to their organization in the coming year, one-third of the respondents (33%) cited real estate term loans. Other top choices:
- Construction loans (23%)
- Refinancing of stabilized or repositioned facilities (22%)
- Bridge to agency loans (including Fannie Mae, Freddie Mac and HUD) (14%)
The survey arrived on the eve of the National Investment Center for Seniors Housing & Care’s Fall Conference in Chicago, which kicks off today. Its implicit message is that capital providers will need to offer funds with unusually attractive rates and conditions.
The survey also found that dealmaking affecting existing properties appears to be more in vogue this year, at least when compared with new construction.