Greystone and MONTICELLOAM Form Healthcare Capital JV
The venture will offer various solutions, including lending, servicing and asset management, distressed workouts, and operational consulting.
Greystone and MONTICELLOAM are combining their senior housing and healthcare lines of business under a new joint venture that will provide capital finance products and services for the skilled nursing, assisted living, and senior housing sectors.
These include first mortgage floating rate bridge loans, fixed-rate conventional term loans, mezzanine and preferred equity products, tax-exempt bond financing, equity capital, accounts receivable and working capital lines of credit, loan servicing and asset management, troubled asset advisory/workout services, healthcare operational consulting and FHA, Fannie Mae and Freddie Mac permanent financing.
Greystone originates more than $3 billion overall in senior housing and healthcare finance across FHA, Fannie Mae, Freddie Mac, bridge and other proprietary platforms, while MONTICELLOAM services approximately $1.8 billion in senior housing and healthcare loans in the US.
Coming out of the pandemic, expect interest in healthcare to increase. Skilled nursing is already showing signs of recovery. While still 13.7 percentage points below its pre-pandemic level, occupancy at US skilled nursing facilities increased to 71.2% in February 2021 from 70.7% in January, according to NIC MAP data prepared and released by NIC MAP Vision. February’s increase pulled occupancy back to the December 2020 level.
At the same time, investors are doubling down on this asset class. Just last week, Sila Realty Trust exited the data center space to focus on healthcare with the sale of a 29-property data center portfolio.
Sila sold 29 data center properties to Mapletree Industrial Trust, a REIT listed on the Singapore Exchange, for $1.3 billion. The transaction will be completed in one or more closings during Q3 2021.
“This action marks another key step in Sila Realty Trust’s evolution to provide a clear path for the company to pursue a strategy as a pure-play healthcare REIT,” said Michael A. Seton, Sila CEO and president, in a prepared statement.