Lender gives reason to be ‘bullish’ on housing and senior care – Business Daily News
The senior housing industry has undoubtedly seen challenges from the pandemic, but âthe fundamentals of the business are strong,â said Matthew Ruark, senior vice president of commercial mortgage production and healthcare. health at KeyBank Real Estate Capital Group.
“We are optimistic about housing and senior care,” Ruark wrote in a blog for the National Investment Center for Housing and Elderly Care.
Borrowers are looking for more flexible financing as the economy continues to recover from the pandemic, so short-term bridge financing is a popular option now, Ruark said. The occupancy rate is still behind the traditional threshold of 90%, from which borrowers are likely to switch to permanent lending structures, he added.
âThere is a lot of capital on the sidelines,â the lender said.
According to Ruark, the two biggest challenges facing seniors are the need for a middle market option and the national labor shortage.
But the lives of the elderly are needs driven, Ruark said, and as a result, he is optimistic about his future. The industry that has weathered the Great Recession and, thus far, the COVID-19 public health crisis, and demographics are on the provider side as the population ages, he added.
âWe are true believers in the business,â Ruark said.