On Balance Sheet Solutions
Wilshire manages several real estate debt funds bridge loans delivering solutions from $1 million to $10 million secured by senior housing and healthcare real estate nationwide. Focused on the needs of regional institutional owners* Wilshire combines an entrepreneurial approach, institutional sophistication, and discretionary capital inside a boutique environment to deliver outstanding service to our clients.
- First Mortgage
- Second Mortgage
- Mezzanine Debt
- Participating Debt / Hybrid Equity
Our alternative short-term capital solutions are used by clients to strategically bridge the gap in timing and financing on opportunities and situations requiring the speed and flexibility of a balance sheet lender.
* A regional institutional owner is a seasoned owner of three or more Senior housing facilities with an average headcount over 20.
We possess a comprehensive understanding of the senior housing and healthcare real estate market. This knowledge and perspective allows us to provide certainty of execution for experienced owners on opportunities involving straight purchases requiring speed, transactions involving acquisition and stabilization, value-add transactions, and other market opportunities.
Senior housing and other healthcare real property assets are a critical part of the operating company’s business. Because the needs, wants and desires of seniors continues to evolve and new operators with modern business models are entering the market, the industry is dynamic and current owners must be proactive to be competitive, let alone maintain their market position. When combined with a permanent financing solution, the strategic use of short-term capital can assist operators in the competitive repositioning of their properties to gain or maintain a market advantage. Further, in addition to repositioning an asset itself, alternative financing may be used for financial repositioning; including, pre-agency recapitalizations and cash-out refinances, partner buy-outs, structured earn-outs, sale/lease-backs, and other transactions involving the real property asset that can provide significant financial benefits.
Acuity Level Transition
Transitioning acuity levels in a facility may be driven by external drivers and internal opportunities. Examples of external drivers include increased regulation and compliance costs, while internal opportunities may include demand identified within the business for a modified level of care. By having access to a variety of funding sources, including agency, bank and on-balance sheet capital, Wilshire helps owners free the equity in their facilities to facilitate change.
Off-Balance Sheet Solutions
In addition to closing and servicing loans on the balance sheets of our funds, Wilshire’s strategic relationships enable us to provide bank, credit union, insurance company, finance company, CMBS, and agency financing solutions. As a result, our team has the capital access needed to tailor creative, best-in-class solutions for our client’s needs.
Agency loans include SBA, Fannie, Freddie, and HUD catering to experience borrowers with seasoned operating assets. These loans are highly structured offering extremely competitive rates, varying recourse provisions and longer amortization terms with leverage in-excess of 80%.
Bank / Credit Union
Banks and Credit Unions offer the borrower more flexibility in financing. Loan conditions may include fixed or floating rates, initial interest-only periods, three to ten years in duration with recourse and leverage from 65%-75%.
Life Companies cater to borrowers who want longer loan terms with the greatest flexibility in structure. These loans are more conservatively underwritten and rely heavily on the sponsorship and asset quality, providing terms over fifteen-years, varying recourse provisions and leverage to 70%
Conduit / CMBS Loan
CMBS execution is an attractive avenue for many borrowers. They are typically aggressively priced, non-recourse, fixed rate loans with terms up to ten-years and leverage exceeding 75%.