The Capital Issue

December 2012-January 2013

It’s appropriate as 2012 comes to a close that many of the articles in the December-January edition of The Capital Issue look forward to what 2013 may bring our way. 

The feature article explores how issues, such as the fiscal cliff and the euro crisis, may impact U.S.  interest rates in the new year as well as how the cost of capital will affect the sectors we serve. Other articles focus on emerging or continuing trends: the quickening pace of hospital mergers and what independent facilities need to know before considering an affiliation; new construction and renovation/expansion projects for senior living are beginning to pick up in some areas as aged facilities need to be replaced and providers prepare for the growing memory care demand; and a special interview with David Lacki, our new managing director of housing, as he talks about what’s in store for developers in 2013. Additionally, The Fiduciary Focus concludes the second half of the series on common investment mistakes made by nonprofit trustees and how to avoid them.

Looking back on 2012, HUD had a record year in seniors housing activity with 706 loans closed. This unprecedented growth—up 66% from the previous fiscal year—was led by Lancaster Pollard. The historically low interest rates and flexible terms have made HUD the go-to funding source for providers.

As we look toward the future, all of us at Lancaster Pollard wish you and your organization the very best for 2013. 

Tom Green, CEO

2013 Interest Rate Outlook
12/11/2012

2013 Interest Rate Outlook

Just as the preparation for Y2K caused much concern as users of technology scrambled to ensure that their systems remained viable after the clock turned to a new millennium, the run up to the fiscal cliff created equal apprehension. Almost all interested parties, including politicians, economic theorists, corporate entities, investors and consumers, expected a painful fall from the fiscal cliff. Some observers even connected the Mayan calendar prediction of the end of time and the fiscal cliff. 

Thinking About Merging? Considerations for Your To-Do List
12/10/2012

Thinking About Merging? Considerations for Your To-Do List

Spurred on by growing economic challenges, many remaining independent community hospitals are currently considering some degree of affiliation with a larger health care system. This is not surprising as hospital mergers and acquisitions have steadily been increasing since the recession of 2007-2009.

New Development: What's Coming Down the Pipeline and How To Finance it
12/9/2012

New Development: What's Coming Down the Pipeline and How To Finance it

Limited in recent years by a domestic recession, capital for new development and expansion/renovation projects has been tight in the senior living sector. Changes in lending and reimbursement have only compounded the credit crunch. Despite these uncertainties, there are some attractive financing opportunities for new development, renovation and expansion.

Housing Outlook: A Q&A With David Lacki
12/8/2012

Housing Outlook: A Q&A With David Lacki

David Lacki joined Lancaster Pollard in July of 2012 as the managing director of the firm’s housing group. David has worked 25 years in the housing finance industry for nationally known firms, including most recently as a director in the Housing Capital Markets Group at RBC. We recently sat down with David to discuss the current state of the housing industry and its outlook for 2013

Oversight-Part 2: Common Investment Mistakes of Trustees
12/7/2012

Oversight-Part 2: Common Investment Mistakes of Trustees

This is the second of a two-part series about the most common mistakes nonprofit organizations make when considering their investment portfolio. The previous article discussed four common mistakes; this article covers three more that fiduciaries should examine. Being informed of these costly errors will pay off in the overall growth of your portfolio, and in turn, your organization’s financial well-being.