Health-Care
or Healthcare
(Nursing Home, Congregate Care, Assisted Living,
Other Health Care)
Health Care
A general property type or building type classification characterized
by its usage for healthcare purposes. Subtypes include Nursing
Home, Congregate Care, Assisted Living, Other.
|
Nursing
Home
A
Healthcare subtype; an entity that provides skilled nursing care and
rehabilitation services to people with illnesses, injuries or functional
disabilities. Most facilities serve the elderly.
However,
some facilities provide services to younger individuals with special
needs such as the developmentally disabled, mentally ill, and those
requiring drug and alcohol rehabilitation. Nursing homes are generally
stand alone facilities, but some are operated within a hospital or retirement
community.
Medical/Medicaid
(Healthcare) (Income Expense Info.)
Income
from patient beds occupied by Medicare/Medicaid sponsored healthcare
patients.
Level
"A" Deficiency (Healthcare) (Building Info.)
Level
"A" is a classification, deficiency or violation relating to nursing
homes that creates a condition relating to the operation and maintenance
of a nursing home that presents a substantial probability that death
or serious mental or physical harm to a resident may occur as a result
of the deficiency.
Below are typical issues and required calculations we address for each
type of commercial property.
Health
Care Financing
Best Rates are associated with: Properties with >1.50
DSCR, <70% LTV, <5% vacancy, appropriate Cap Ex reserves
- LTV up to 92%
- Occupancy down to 70%
- Amortized to 40 years
- Permanent (Purchase and Refinance) loans from $25 Thousand
to $1 Billion
- Construction loans from $250 Thousand to $300 Million
- Bridge loans from $200 Thousand to $300 Million
- FNMA loans from $2 Million to $100 Million
- Hard Money
Issues:
- This
sector has the highest delinquency rate of all property types
- Net
Cash Flow calculations include Replacement Reserves ($250-$275/bed)
- Scrutinize
Private Pay vs. Medicare/Medicaid and property management experience
- Lenders
may reconcile property value using the Direct Capitalization Approach
on NOI and NCF
General
Required Calculations: (we
do these calculations for you)
Rent
Roll illustrating in-place occupancy and Potential Gross Income
Effective Gross Income - Potential Gross Income minus the greater
of underwritten or market vacancy
Net Operating Income - EGI minus operating expenses
Net Cash Flow - NOI minus Capital Expenditures
Debt Service Coverage Ratio - NOI divided by Annual Debt Service
Cap Rate - should be applied to the stabilized income stream
to estimate direct capitalized value to support loan request
For
Definitions of Commercial property types etc... (see
Commercial Glossary)
Commercial
property loan rates are at all time low.
March 01, 2006 - National Average on a $1,000,000
loan amount,
amortized at 25 years.
-
Fixed rates are based on a 10-Year fixed rate term.
-
Fixed rates reflect conduit lenders and
-
Variable rates reflect portfolio lenders.
Healthcare
Financing Permanent Loan Amounts: $25,000 - $1
Billion
- Fixed
Rate Retail Property Loans 5.54
- 10.15%
- Variable
Rate Loans for Retail Properties 5.41
- 10.15%
Colorado
Rates remain below the above National Avg.
See our rate page for all markets effecting
rates
Commercial mortgage lenders typically require specific loan level data
about a property in order to analyze the underwriting risk, prepare a
loan quote, and ultimately fund a loan. Mortgage brokers are a primary
source of commercial loan originations today. As a result, lenders' expectations
regarding the level of reporting, analysis and overall quality of the
origination are increasing.
Unfortunately,
there are many brokers who can't obtain financing for commercial properties
because they use a residential loan application to submit
to lenders
- BIG MISTAKE !
See Example Loan Package Extracts
Unlike
Residential financing where the Borrower must qualify for the
mortgage product; Commercial financing differs whereby
the Property must qualify (not the borrower).
How MTG Brokers Corp. Gets You the Best Rate for Your Commercial
Property
Commercial mortgage rates are commonly based on the 10-Year US
Treasury yield plus a lender Margin/Spread.
The interest Rate Index change is based upon market and trading conditions,
while spreads are influenced by loan/property factors - primarily
Debt Service Coverage and Loan To Value.
Property that demonstrates a high DSCR and low LTV will likely command
a lower interest rate.
MTG addresses DSCR/LTV issues via calculations to analyze reserves,
fees and other lender underwriting constraints that can impact a properties
Net Cash Flow and therefore, the overall interest rate and loan pricing
at the time of your loan origination.
This is where others fail to obtain you a lender commitment and why we
don’t collect any fees until after an offer
is submitted by a lender to you “for your approval”
(Typically, A National, Regional or Colorado Lender You Know and Trust
!)
Commonly
Required Property Data and Format While
loan submission requirements may vary among lenders, most lenders request
the inclusion of the following core loan data:
- General
property and building description
- Current
rent roll to reflect lease start/end dates, square footage or unit type,
contract rent, rent escalations, reimbursement issues, and estimated
market rent
- Property
income and expense worksheet including calculations for net operating
income (NOI) using at least two historical years of income and expense
- Calculation
and support of normalized net cash flow (NCF) including appropriate
reserves based on property type (e.g., vacancy & collection Loss,
management, capital expenditures, tenant improvement costs, leasing
commission costs (TILC)
- Reconciliation
of direct capitalized value to purchase price
- Loan
amount constrained by maximum loan to value (LTV) and debt service coverage
ratio (DSCR)
For
a Retail Commercial Loan (Click Here)
Construction, Purchase, Refinance, Bridge,
Hard Money
Or
Visit One of These Pages
Office
Building Commercial property Loan Rates and Financing Info.
Office
Includes: Central Business District (CBD) Office, Suburban Garden Office,
Suburban High Rise Office, Medical Office, Other Office, Doctor Office
(for patients requiring bed space - Choose Health Care)
Retail
Commercial property Loan Rates and Financing Info.
Retail Properties Include: Grocery, Strip Center, Mall,
Outlet Center, and Specialty Center (Car Wash, Golf Course, Auto Repair,
Dry Cleaners, Cemeteries.....), etc...
Industrial
Warehouse Commercial property Loan Rates and Financing
Info.
Industrial and Warehouse
include: Warehouse with Office, R & D, Manufacturing, Flex
Space, etc...
Multifamily
Commercial property Loan Rates and Financing Info.
Multi Family: Apartments, Condos, Townhomes, Military and Student
Housing, Community Developments, etc...
Lodging,
Hotel, Motel Commercial property Loan Rates and Financing Info.
Hotel Include all Lodging, Motel, Economy, Luxury,
Resort, Extended Stay, etc...
Mobile
Home Parks Commercial property Loan Rates and Financing Info.
Mobile Home Parks: RV and other Pad rental space
Healthcare
Commercial property Loan Rates and Financing Info.
Health Care: Nursing Home, Cognitive Care, Assisted Living, Hospitals,
etc...
Self
Storage Units Commercial property Loan Rates and Financing Info.
Self Storage (Mini-Storage, Climate Controlled / Refrigerated Storage,
Yard Storage, Other Storage)
Mixed-Use
Commercial property Loan Rates and Financing Info.
Mixed-Use: A combination of usually two of the following: Office,
Retail, Hotel, Multifamily, Industrial
Including:
Community Development & Financing
Agricultural Use Property
Rural
Area Lending
Land Financing
for
other available financing options - Please see:
Also see Balloon Mortgage for
Variable
Rate & Cap Rate.
Please
see the Commercial Only Glossary
(see Commercial Glossary)
|
