As the number of seniors housing finance players continued to expand over the course of 2013, and more liquidity came into the market, several lenders posted big originations numbers both in terms of origination counts and dollar volume of lending facilitated.
Topping the list for last year’s originations for senior housing specified as age restricted (but not inclusive of healthcare lending such as memory care and assisted living), according to data tracked and compiled by the Mortgage Bankers Association, were CBRE Capital Markets, Greystone, PNC Real Estate, Wells Fargo and Grandbridge Real Estate Capital.
By number of originations, Greystone took the No. 1 position with 53 senior housing originations in 2013. CBRE was second, with 40 originations total, followed by Wells Fargo with 28 and Lancaster Pollard with 32.
“We are continuing to see strong transaction volume from our clients for acquisitions and refinances, as well as increasing deal flow for new construction and interim financing,” said Scott Kavel, head of Greystone’s seniors housing finance group, of continued activity following last year. “We anticipate originations and dollar volume increasing in 2014.”
By dollar volume, however, CBRE conducted the largest amount of senior housing/age-restricted finance business including both intermediary activity and lender activity at $625 million, followed by Greystone with $517 million, PNC with $338 million, Wells Fargo for $193 million and Grandbridge for $144 million.
The volume represented an uptick for CBRE through 2013 over 2012, and is expected to continue over the course of this year.
“We’re on pace to have a significant year this year, both as a lender and an intermediary,” Matthew Whitlock, senior vice president for CBRE Senior Housing Services, told SHN. “2013 was a year of continued liquidity in the marketplace where CBRE was successful in volumes in excess of what we did in 2012.”
CBRE expects heightened competition to play out in the current market with a roughly 50/50 split between intermediary activity and lender activity for the company.
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“CBRE is seeing more and more lending sources entering into the marketplace for age restricted/senior housing. We’re seeing from the lender perspective increased competition by other lending sources outside of Fannie Mae and Freddie Mac.”
Editor’s note: MBA compiles senior housing/age-restricted originations not including healthcare lending.
Written by Elizabeth Ecker