The Debt Market Analysis tool provides operators, developers, owners, brokers and lenders with a comprehensive solution for estimating and accelerating access to senior housing financing.
What does Debt Market Analysis Help You Do?
The tools grant you the opportunity to provide high level underwriting goals to lenders, the ability to estimate competitive loan pricing for your deal, the ability to project your deal's equity surplus or shortfall, and to provide you with an environment to visualize how debt options can impact pricing. Other key use cases include being able to analyze Senior Housing lending parameters, current financial market conditions, and the feasibility of acquisitions, refinances, and new construction projects.
Where do you access the Debt Market Analysis tool?
The Debt Market Analysis Tool, available to all Market Insight and Properties users, can be accessed in two places. Market Insight subscribers can find it within the Site Detail report of a completed Site Evaluation. The tool is accessed through the Advanced Analysis tab shown in the top banner of the Site Detail report. Properties subscribers can find it in a property icon pin. Click into any unique property and choose Debt Calculator on the icon. Access is also available through any PIR or PAR reports that are generated.
Permanent Debt Tool
Auto-populated unit counts available in the Permanent Debt Tool are based on data from NIC MAP Vision's database. Estimates do not reflect units that may be under construction, and may not always reflect the property's most recent configuration. If your analysis matches with the location of a known building, that known building's unit count data will auto-populate. Selecting a building in Local Property Search and entering the debt tool from the respective link will also auto-populate unit counts in the tool. If no buildings are found, unit count estimates will be 0 and must be entered.
In order to 'Calculate' and analyze financing options for a senior housing property using the Permanent Debt Tool, the total of IL, AL, MC, and NC units must be greater than 0, as-is net operating income must be inputted, and the Cap Rate must be greater than 0. Once these required fields are met, you can click 'Calculate' to analyze the data.
Clicking 'Calculate' will present the 5 most common options for debt in the senior housing market place today. These encompass Fannie Mae, Freddie Mac, Ginnie Mae (HUD), Bank, and CMBS.
Construction Debt Tool
To ‘Calculate’ debt using the Construction Debt Tool, the total of IL, AL, MC, and NC units must be greater than 0, and the project budget must be greater than zero. Once these minimum required fields are met, you can click 'Calculate' to analyze the data.
Clicking ‘Calculate’ will present you with an estimate of construction financing based on current market conditions as sourced through a bank. While other lenders also offer construction financing, banks are the primary source of funding. Agencies generally do not offer construction financing for Senior Housing.
Upon clicking ‘Calculate’, you’re able to view the estimated terms, along with your deal’s capital stack. Additional analysis can be performed using the Interest Rate and Cost Sensitivity Analyses. Lastly, there are numerous financing options available to modify your deal terms and monitor the impact of those changes.