Financing insights / 16
Senior Housing, Assisted Living & Memory Care Financing
Senior housing combines real estate, operating performance and specialized care considerations, making lender selection particularly important.
At a glance
Senior housing combines real estate, operating performance and specialized care considerations, making lender selection particularly important.
MDN Capital Consulting helps sponsors evaluate financing for acquisitions, construction, refinancing, renovations, expansions and transitional senior-housing properties.
Financing overview
Financing at a Glance
Potential Property Types
- Independent living
- Assisted living
- Memory care
- Mixed senior-living communities
- Certain skilled-care properties
- Senior-housing developments
What Do Senior Housing Lenders Evaluate?
In addition to real estate value, lenders may consider occupancy, resident rates, operating margins, management experience, licensing, staffing, property condition, local demographics and operating history.
Hypothetical example
Illustrative Scenario — Assisted Living Acquisition
Purchase price: $12,000,000. Existing assisted-living facility with below-stabilized occupancy. A bridge lender may evaluate current performance, property value, sponsor experience and feasibility of the stabilization plan.
Illustrative only. Financing and terms depend on lender underwriting.Borrower questions
Frequently Asked Questions
Can I finance an assisted-living acquisition?
Yes, subject to property, operator, sponsor and lender underwriting.
Can I finance a senior-housing facility before stabilized occupancy?
Potentially. Bridge lenders may consider transitional senior-housing properties.
Is construction financing available for senior living?
Potentially. Development financing requires detailed analysis of the project, budget, approvals, sponsor and market.
Does operator experience matter?
It can be a significant consideration because senior housing includes an operating-business component in addition to real estate.
Financing inquiry
Financing a Senior Housing Property?
MDN Capital can evaluate acquisition, construction, bridge and refinance requirements for senior-housing transactions.