Why Seniors Housing Loans Are Rare in NY
The scarcity of land that plagues all developers is even harder for those building seniors housing in New York State, according to Berkadia Commercial Mortgage’s Dan Biron. He’s co-head of the seniors housing and healthcare group, which is HQ'd in Manhattan but doesn’t do much business here. State regulators favor in-state developers, which translates to non-national, small developers. Ginnie Mae, meanwhile, often deems construction loans risky, which ups the premium. Vertical construction, while not typical for seniors projects, is one solution because it allows for greater density, he says. (Throw in greater bone density, and you'll definitely attract seniors.) Berkadia recently arranged a 10-year, Freddie Mac refi for Brookdale Senior Living’s Hallmark Battery Park City (above), part of a five-property portfolio.