Baby Boomer Housing Crisis is Big. Huge. GINORMOUS.Â

August 2018 Capital Wisdom #8

View this email in your browser

Baby Boomer Housing Crisis "Bigger Than Just The Senior Living Industry"

Baby boomers are facing a housing crisis, perhaps the most severe to hit this demographic in recent history. However, its impact will be felt not just by boomers, but by the entire country, predicts Jeffrey Davis, Cambridge Realty Capital Founder and Chairman.

Aptly referred to by the media as the "Silver Tsunami," the tidal wave of baby boomers reaching retirement age is, as yet, still in its early stages. As the wave continues, it will continue to rise to its peak. The peak of the Silver Tsunami, when the greatest number of baby boomers reach age 65, is projected to hit in approximately ten years.

Cambridge Arranges $9 Million HUD Lean Loan To Refinance Culver West Health Center Located In Los Angeles, CA

Cambridge Realty Capital Companies reports arranging a $9,200,000 HUD Lean loan to refinance Culver West Health Center, a 91-bed skilled nursing care facility located in Los Angeles, California. Hymie Barber, Cambridge National Originations Manager, said the fully-amortized, 33-year loan was arranged for the owner, a California limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program. Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

Why High Acuity Senior Care Facilities Need HUD Loans And Why Cambridge Is The Place To Get One

A recent report published by Senior Housing News is causing senior living developers and operators to consider the value of senior housing/university partnerships. Inside the Future of University Partnerships in Senior Living is a comprehensive, 27-page, research-based report with the goal of educating senior living stakeholders on the benefits of such collaborations.

Cambridge Realty Capital Companies’ chairman Jeffrey Davis thinks the idea of senior living owners partnering with universities has a great deal of merit. “It’s a forward-thinking approach that has limitless potential for improving the lives of seniors on a variety of levels,” he comments. “It also demonstrates a sense of valuing seniors as a vital part of the community-at-large.”

Senior Housing Versus Commercial Real Estate

From a financial underwriting perspective, the age-old question for senior housing is: Is it a business or is it real estate?

“In boom times, all senior housing owners want capital markets to perceive senior housing as commercial real estate because, historically, capital has been more readily available. In tough times, when capital is less readily available, senior housing owners remind the capital markets that senior housing is a need-based business that is recession-resistant and totally independent from the rest of the economy,” Chairman Jeffrey A. Davis explains.

Read more