Market Research – Due Diligence for Lenders

More than ever, professional market research provides a sound foundation not only for planning purposes but as part of the lender’s due diligence process. While it may seem that by the time the lending decision is reached, the market research has been done, it is still an important element in the lender’s decision to finance a senior housing development. And as the developer pursues financing options, they are likely to include the market study in their presentation package. If it’s not there, needless to say, a lender experienced in seniors housing will ask for it. Aaron Rulnick, Managing Partner at HJ Sims says “An independent market study is a critical element of our due diligence process when we are considering providing financing for a senior living project.  Whether the project is a start-up or expansion, we advise that the market study should be completed in the initial planning stages to guide other critical decisions in the development and financing process.”