Attitudes towards all financing has been conservative since the start of the Great Recession.  With that, there is plenty of capital on the sidelines, earning little to no money.  As the real estate economy appears to recover and steady, and with the US stock market hitting all-time highs, many in control of that “sideline capital” (and even some with capital in the stock market) are investing in real estate.

 

We are seeing significant amounts of those “sideline capital” holders seeking out healthcare real estate investment opportunities.  In some cases, we are even seeing competition for equity positions and lending in such projects.  Even so, not every developer should rush into healthcare real estate development.  It is very much a reputation-based industry, and you tend to see many of the same people year after year at the BOMA Healthcare conventions and similar events.

 

Is there opportunity?  Absolutely, but be ready to have to prove yourself, and to do so multiple times before many of the healthcare real estate finance sources start giving you and your projects that all important second look.

 

Read more at “Capital climate heats up

 

– Gary T. McDermott

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