KeyBank National Association has been the No. 1 Fannie Mae lender in the senior housing sector for three consecutive years, according to rankings released Monday.
Berkadia Commercial Mortgage, LLC claimed the second spot in the latest rankings, for 2014. Berkadia ranked No. 4 in 2013, which was the first year for which Fannie Mae named the top 5 lenders with the highest volume in seniors housing. In prior years, only the top institution was identified.
The other three lenders are new to the list. The top five are:
- KeyBank National Association
- Berkadia Commercial Mortgage, LLC
- PNC Real Estate
- Wells Fargo Multifamily Capital
- Grandbridge Real Estate Capital, LLC
KeyBank’s volume in permanent mortgage business with Fannie for seniors housing slightly exceeded $400 million last year, according to Carolyn Nazdin, senior vice president of KeyBank Real Estate Capital.
A number of factors have contributed to KeyBank’s sustained run at the top of the rankings, Nazdin told Senior Housing News. Part of its success stems from the fact it is not focused solely on mortgages. Being a nationwide bank, it can help meet client needs and support growth through “broad and diverse” short- and long-term financing products, she said.
“I believe that our longevity in the sector, and our dedication in terms of resources and expertise, have come to fruition,” Nazdin added. “We have a finely tuned healthcare platform.”
Fannie Mae did not disclose each lender’s volume. Overall senior housing lending production totaled $1.5 billion in 2014. This was a slight decrease from $1.6 billion a year prior; however, that 2013 number included some carryover from the prior year, Fannie Mae’s Sheila Miller, director of lender relationships and loan production, told SHN.
Fannie remains committed to the sector and sees substantial growth potential, said Chris Honn, director of borrower relationships. In addition to well-known favorable demographic trends, he pointed to the “tremendous flow” of equity financing into U.S. seniors housing, including from international sources.
The top 5 senior housing producers all worked with Fannie Mae through its Delegated Underwriting and Servicing (DUS) risk-sharing program. Berkadia, Wells Fargo and PNC also were among the top 10 DUS producers overall in 2014, along with CBRE Multifamily Capital, Inc., Greystone Servicing Corporation, Inc., and several other lenders active in seniors housing.
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Written by Tim Mullaney