WASHINGTON, DC–Fannie Mae has provided nearly $4 billion in seniors housing market financing this year through the third quarter of 2017 — the highest volume in its DUS (Delegated Underwriting and Servicing) program and a significant increase from the $1.5 billion that it provided for all of last year.
To date, Fannie Mae has provided $13.4 billion to the sector through the third quarter of 2017.
There are several trends at play that led to this increase, according to Roosevelt Davis, director of Multifamily Seniors Housing: demographics and the number of large deals and refinancings for which borrowers have tapped Fannie Mae.
Davis also attributed the market's growing acknowledgement of the flexibility and scope of Fannie Mae's credit facility product. “I would say our credit facility product has been instrumental in attracting institutional owner-operators looking to finance deals,” he tells GlobeSt.com. “It has become very attractive to REITs and institutional sponsors,” he says, noting that the GSE is in talks with some REITs at the moment for financing under the facility.
Among its attribute the facility can ladder maturities and multiple tranches of debt. It can combine fixed and floating rates and can add, release and substitute properties. There is also a first lien borrower up feature that lets borrowers secure a loan at first-lien pricing.
Fannie Mae finances senior housing properties across the spectrum of acuity — Independent Living, Assisted Living, Alzheimer's/ Dementia Care, or any combination of the three. Fannie Mae also finances Continuing Care Retirement Communities and some facilities with Skilled Nursing.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
