"It's case by case," says DWINN-Shaffer Co. vice president BarryAxelrod, who is president of the Illinois Mortgage BankersAssociation. "It doesn't mean lenders won't do either (health careand certain retail properties). But they'll going to take a littleharder look at retail, nursing homes and assisted-livingfacilities."

E. James Keledjian, a principal with Pathway Senior Living LLC,knows first-hand about assisted-living facilities. "Because of thecondition of the national market the last couple of years, thereare no lenders except for the Department of Housing and UrbanDevelopment, Section 232. They are the lender of only resort,"Keledjian says.

Besides overbuilding, Keledjian says most lenders are unfamiliarwith the product, which besides real estate includes an operatingbusiness, similar to a hotel property. Meanwhile, his company hasfound a niche with assisted-living facilities for Medicaid patientsunder a state program.

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