Why Private Lenders Like Medical Office Deals

Brian Good is the CEO of iBorrow.

Private lending platforms are taking on the medical office and healthcare deals that other lending sources are turning away. iBorrow CEO Brian Good says that the firm has seen increased activity for medical office and healthcare deals, and believes that the asset classes are good long-term investment opportunities. The firm recently provided $6 million to refinance a maturing loan for a skilled nursing facility. The property recently settled a partner dispute and turned to the private lender for a bridge loan while it secured a permanent financing through HUD.

“There is strong and growing demand for loans to refinance and purchase all types of healthcare-related properties, including medical offices, senior and assisted living facilities and skilled nursing facilities,” Good tells GlobeSt.com. “Because of the perceived intense operational needs, banks and CMBS lenders are passing on these opportunities. iBorrow lends on these property types as long as the sponsor is strong and the business plan is viable. We believe the perceived risk in many cases is higher than the actual risk.”