Bank filling gap in nursing home lending.MetBank has closed two nursing home real estate loans in the New York Metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. in recent months totaling nearly $20 million and has initiated due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. on a third, out-of-state loan. "In Manhattan, we structured a $14 million loan for an upper east side nursing home located on 79th Street to refinance existing debt and for capital improvements; we also provided $5.25 million in property acquisition financing to the operators of a New Rochelle New Rochelle (rōshĕl`), city (1990 pop. 67,625), Westchester co., SE N.Y., on Long Island Sound; settled by Huguenots 1688, inc. as a village 1858, as a city 1899. nursing home located on Pelham Noun 1. Pelham - a bit with a bar mouthpiece that is designed to combine a curb and snaffle bit - piece of metal held in horse's mouth by reins and used to control the horse while riding; "the horse was not accustomed to a bit" Road," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Richard Rubin, who heads up real estate lending at the midtown-based, nationally chartered institution. Rubin says the bank put a primary focus on middle market commercial and real estate lending when it was founded in 1999 and quickly identified nursing homes as an important niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . "We've been very active with nursing homes on the commercial lending side right from the beginning and quickly saw that facility valuations were more than holding their own compared with the double-digit growth in values of commercial and residential properties. Thus, our real estate group has been looking hard at nursing home lending opportunities not only in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of but in important markets elsewhere in the country." Medicaid and Medicare patient reimbursement programs make nursing homes an attractive market for lenders. New York State, for example, allocates nearly $44 billion of its $104 billion budget to Medicaid. But banks have had an aversion a·ver·sion n. 1. A fixed, intense dislike; repugnance, as of crowds. 2. A feeling of extreme repugnance accompanied by avoidance or rejection. to the industry ever since it was rocked by scandals in the 1980s. Stricter regulation has significantly reduced the opportunity for fraud but it has also made it a more complex arena in which to do business. MetBank has minimized risks by developing a deep understanding of the intricacies of this marketplace. And, in the case of nursing home real estate loans, by focusing on property valuations as well as P & L statements. Thomas Moore, the MetBank lending officer who helped structure the Manhattan and New Rochelle transactions explained that MetBank's reputation as a knowledgeable lender in the industry is driving the growth of its overall nursing home portfolio. Adds Rubin, "In the end, when it comes to a nursing home real estate loan, it's property values that provide us with an additional measure of comfort in making a loan to a nursing home. And so we look beyond me use of the property and take into account its value based on location and its potential for other residential or commercial uses." There is a lot of pressure on the nursing home industry today so a final decision on a real estate loan needs to take in to account good real estate lending practices, the banker explains. |
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