It is no secret that the Senior Living/Housing market is a growing and profitable sector of the real estate industry. 2014 was an incredible year for this industry. Price per unit increased at least 25% for both the assisted and independent living markets. Interest rates are down an average of 80 basis points in this potentially trillion dollar industry. Data shows that buyers out number sellers. Demand is very high, but demand is unfortunately not being met. Wedgewood Investment Group is working with operators and developers to fill that demand. “The banks like Senior Living and are willing to do construction loans. Equity investors like the space due to the excellent returns. Agency funding, REITS, or commercial banks are all great non-recourse take outs,” according to Wedgewood’s President Rudy Trebels. Wedgewood recently announced four new relationships with senior living investment funds. The funds provide JV Equity and Preferred Equity investments to senior living developers and operators.
Wedgewood’s pipeline has over $250,000,000 in senior living projects. Wedgewood, a mortgage banking entity based out Northfield, IL, a suburb of Chicago, was formed in 2009 and is focused on financing the existing demand in the senior living industry. Since 2009, Wedgewood has advised on the funding of both debt and equity transactions to the senior housing industry across the entire United States. “Most of our clients are developers/operators with four to six projects in their pipeline and three to five new projects coming on-line per year. Our equity sources are looking for developers/operators with a platform looking for a capital partner to fund the pipeline of future projects, a programmatic pipeline relationship.”
To contact Rudy Trebels about any of your senior living financing needs, please call the Wedgewood offices at (847) 784-0055 or email at RudyTrebels@wedgewood-llc.com. Wedgewood will be attending the ALFA Senior Living Executive Conference in Tampa, Florida May 4 – 7. We are willing and looking forward to meet with anyone to discuss any senior living transactions.
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