SAN DIEGO: There are myriad reasons why some finance institutions walk away from potential relationships in the senior housing sector. Here are the most often quoted excuses:
1. Not ready to commit: While many lending institutions are eager to align themselves with the senior housing and care space — which boasts attractive investment returns and a strong underlying demographic demand — there are a few key missteps some make in the process to seek project financing.
Operations are everything.
“It’s all about the operator who is going to run that project…You could have the greatest developer/owner but if he/she doesn’t understand senior housing and care and doesn’t hire somebody experienced you’ll get squashed.”