Is the maturity date of your current loan approaching? Waiting to act can be costly, warned Cambridge Realty Capital Managing Director Tony Marino. “Many conventional lenders are choosing not to offer extensions, putting borrowers in a crunch to find alternatives in a timely manner.”
Often, borrowers simply take for granted that their current lender will continue to work with them post-maturity. Unfortunately, this may not be the case in the current market. Even borrowers with longstanding relationships with a particular lender have found themselves unexpectedly looking for new options.
“The problem in this situation is that it forces a borrower to make a decision based on how quickly a new lender can close, rather than what option is best for the facility and meets all the borrower’s goals,” Marino stated. He advises that it’s never too early to start looking for another lender. Simply finding a lender who is a good fit and willing to work with you can take some time. “Borrowers often only look at their current financing when their existing lender informs them their maturity date is approaching,” Marino noted. For this reason, he recommends staying on top of your loan details, keeping the maturity date in mind well in advance. Additionally, don’t assume your lender will give you one year’s notice of your upcoming maturity date.
Marino went on, “Beginning the process of evaluating the current financing and what options for future financing are available should be started yesterday! The more time a borrower allows for this decision to be made, the more options that are available to achieve the desired outcome.” He also urges borrowers to consider working with a lender like Cambridge Realty Capital who understands the senior living industry and is familiar with the needs of operators. “Talk to Cambridge about your current financing and what options we can offer.”
