Differences between Senior Assisted Living and traditional MFR

[Tyler Rayman]

Hi BP Community,

Most of my experience has been with syndicating larger apartment complexes, so I'm relatively new to the senior assisted living asset type. My team and I have identified a portfolio of senior assisted living properties/complexes that we're interested in.

I'm looking for advice specifically on financing this asset type, as opposed to a traditional apartment complex that would take a non-recourse loan. The listing agent thinks that attaining financing through a non-recourse loan might be challenging with senior living. 

Does anyone have any experience dealing with senior living investments that might be able to share their thoughts/story? In an ideal scenario we would be doing a syndication with a non-recourse loan, but I'm not sure if that's possible, or industry standard. Also; given that senior living facilities have a business attached to the property (unlike apartment complexes), do banks view the asset types differently?

Any advise, insight, or shared experience is greatly appreciated!

Cheers