Senior Housing Deals: REIT Cycle Will Not Last Forever

In the latest Insider Newsletter from the National Investment Center for the Seniors Housing and Care Industry, the group sits down with Bill Shine, the Senior Director of Synovus Financial Corporation.

During the interview, Shine discusses the company’s recent entrance into the senior housing space and its plans for the future.  While the majority of senior housing transactions have been dominated by REITs over the last year, Shine expects banks to come back into the business.

“The REIT cycle that we’re currently in will not last forever,” he said.  “REITs are a great compliment to the agencies for providing permanent, longer term financing and providing customers with more options.  REITs have provided a source for strategic, long-term capital that the industry has greatly needed over the past few years.”

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While REITs are dominating the large scale deals, there are other areas where banks can compete.

“Banks will continue to lend on a property by property basis, and that’s what we’ll concentrate on,” he said.  “Frankly, that is where many banks’ core competency lies.”

Shine added that the company is seeing more healthcare banking and construction as well.

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“I see smaller regional and community banks deploying capital on a relationship or almost personal level to certain types of smaller seniors housing and healthcare properties.”

Read the rest of the interview at the link below.

The Seniors Housing Capital Environment:A Discussion with Bill Shine