Summer arrives each year with a jolt of excitement and energy. Whether it’s the sunshine, nostalgic memories of carefree summer days as a kid, or the chance to take that eagerly anticipated beach vacation, there’s something about this season that puts pep in your step. That theme of increased activity can be found throughout the June-July edition of The Capital Issue.
In the feature, we diagnose a gap in the continuum of care for affordable assisted living and detail ways that health care providers can get active in alleviating the problem. In our hospital article, we profile how HUD and the USDA have recently improved their hospital finance programs and the increase in activity that has followed. With our senior living article, we debate the state of the current M&A market and ask if the frothy conditions will continue or cool off. For housing, we describe FHA’s efforts to stimulate activity by reducing rates for affordable and energy efficient properties. Finally, with our After the Financing feature, we profile Laurel Parc at Bethany Village, a seniors housing community where residents retire from work, not life, and try to make each day as lively as the last.
Enjoy these articles and your sunny summer days. And, as always, if you have any questions or comments, please don’t hesitate to reach out.
Nick Gesue, CEO
The Capital Issue: December 2015 - January 2016
Providing compassionate care to the elderly is a core tenet of our society. Unfortunately, there is currently a growing gap in the continuum of care spectrum for lower- to middle-income seniors. As the well-documented demographic wave of boomers gets closer, more attention is being paid to how to fill that gap and provide affordable, quality care to all.
After a six-year bull market where capitalization rates declined and median values increased, momentum in seniors housing prices leveled off during the first quarter of 2016. What does this mean for the sector moving forward? Will the recent headwinds in the market be able to overpower the tailwinds?
Reduce rates, spur activity. That seems to be the thinking in Washington these days regarding the development of affordable and energy efficient multifamily housing. And to those in the housing industry, that thinking is definitely welcome.
Today is a good day to be an issuer in the bond market. With paltry returns available through government bonds and investment-grade paper, fixed income investors are reaching for yield and aggressively bidding for nearly all non-investment grade municipal bond credits, including hospitals. However, not all hospitals are a good fit for tax-exempt bonds. Restrictive covenants, transaction and borrower size, and cost of the issuance are a few factors that may make a public bond issue unfeasible.
“You’re retired from work, not from life.” That philosophy rings true to the many residents of Laurel Parc at Bethany Village.
The Fiduciary Focus