Senior dwelling dealmakers have momentum as dynamics proceed to evolve, pushing common costs larger.
Now, that’s doubtlessly resulting in looser underwriting, in keeping with NewPoint Actual Property Capital Healthcare Actual Property Funding Gross sales Managing Director Tim Cobb.
In December, NewPoint expanded its well being care funding platform, tapping longtime financier Cobb to guide the corporate’s well being care gross sales apply and start providing brokerage companies. In March of 2025, an affiliate of Profit Avenue Companions acquired NewPoint to finish a “one cease store” for monetary companies.
NewPoint’s well being care funding platform now has bridge mortgage capabilities to deploy $500 million to $1 billion in bridge loans, having closed on roughly $100 million transactions as of December of 2025 spanning expert nursing, reminiscence care, assisted dwelling and impartial dwelling properties, Cobb stated.
That is a part of the platform’s plan of “attempting to be extra selective” as alternatives stay plentiful, Cobb stated, with expert being “a main focus” for the platform because of rising acuity and older demographic shifts.
“All the pieces is shifting,” Cobb stated. “Assisted dwelling and expert nursing have gotten extra comparable exterior of the reimbursement facet,” Cobb stated.
Cobb sees alternatives to transact IL-AL rental campuses that can even be “excessive on our precedence checklist.”
NewPoint’s growth is a part of a wave of recent corporations investing in senior dwelling and longtime buyers shifting or increasing their funding methods within the final 5 years.
Whereas senior dwelling carries “an excessive amount of operational and legislative threat” for property pricing alone to shut a deal, pricing ought to “proceed to maneuver up” this yr, Cobb informed Senior Housing Information.
“There may be important capital chasing the demographics and bettering working efficiency, notably for belongings with clear execution and credible sponsorship,” Cobb stated.
Well being care transactions can stall inside the last 30 to 60 days of a deal because of financing and appraisal misalignment, operational dangers surfacing late negotiations or indemnification points “dragging on as either side attempt to cap draw back,” Cobb stated, whereas underwriting situations change.
Most consumers stayed comparatively disciplined however these situations obtained looser as debt capital and fairness capital grew to become extra obtainable, he added. To beat these challenges, sellers can shield worth earlier than going to market by decreasing “uncertainty early.”
Having robust, “clear” financials, stabilized operations, together with a concise capital plan and clear regulatory standing may also be methods sellers can shield pricing energy headed to market.
Consumers proceed to deliver their very own operators to a sale, with analysis of operational power coming from the “investor stage,” Cobb famous, specializing in an operator’s monitor file, staffing capabilities and “the flexibility to execute constantly.”
“At this time the supply of operators for a particular location will drive costs,” Cobb stated. “In different phrases, extra operators, extra buyers, larger costs.”
Older belongings typically carry “hidden capital” wants tied to the property’s age, whereas offers on newer properties can stall because of authorized threat and “even small efficiency slips” that lenders and consumers can’t ignore, Cobb stated.
The senior dwelling trade at the moment faces an getting older properties downside. Nearly half of U.S. senior dwelling communities are 25 years outdated or older, and almost two-thirds are 17 years outdated or older. Within the final three years, operators have been spending CapEx on expansions and renovations as a result of historic lack of recent improvement pushed by financing and building prices.
However, Cobb’s outlook stays rosy, given demographic tailwinds and operators bettering their way of life and care fashions.
“Put in your seatbelt, that is going to be a wild trip,” Cobb stated.
