Private lending platforms are taking on the medical office and healthcare deals that other lending sources are turning away. iBorrow CEO Brian Good says that the firm has seen increased activity for medical office and healthcare deals, and believes that the asset classes are good long-term investment opportunities. The firm recently provided $6 million to refinance a maturing loan for a skilled nursing facility. The property recently settled a partner dispute and turned to the private lender for a bridge loan while it secured a permanent financing through HUD.

“There is strong and growing demand for loans to refinance and purchase all types of healthcare-related properties, including medical offices, senior and assisted living facilities and skilled nursing facilities,” Good tells GlobeSt.com. “Because of the perceived intense operational needs, banks and CMBS lenders are passing on these opportunities. iBorrow lends on these property types as long as the sponsor is strong and the business plan is viable. We believe the perceived risk in many cases is higher than the actual risk.”

There has been an increase in demand from the owners of these properties, and iBorrow is certainly filling a void in the market, but they also see an upside through healthy returns. “The activity and interest level has increased especially in markets with barriers to new construction,” says Good. “iBorrow believes these assets are good, long-term investments. With returns on traditional assets having compressed, investors are flocking to investments in less traditional assets, where an extra 100-200 basis points of return can be return achieved.”