BancAlliance Community Bank Lending Cooperative Expands into Growing Health Care Real Estate Market

Business Wire

CHEVY CHASE, Md.--(BUSINESS WIRE)--

BancAlliance announced today that it has begun financing health care real estate, with two loans totaling $40 million secured by long-term care facilities located in California and Ohio signifying its entry into the market. The cooperative of over 125 community banks, facilitated by Alliance Partners, is already actively lending in the corporate finance and equipment finance markets.

“Health care real estate financing was a logical next step in the ongoing expansion of our lending platform and member services,” said Lori Bettinger, the cooperative’s president. “The market offers a large volume of well collateralized loans with attractive yields in an environment that is conducive to loan syndication. Moreover, the growing demand for health care fueled by aging baby boomers and increasing longevity help mitigate some of the economic forces that impact traditional commercial real estate.”

Managing Director Doug Esposito is leading the health care real estate financing effort. Esposito has more than 18 years of experience in health care financing and was previously employed by Fortress Investment Group, a leading global investment manager, and CapitalSource Inc., a nationwide middle-market lender.

“I’m excited to be a part of BancAlliance and to open this new market for our members,” said Esposito. “Health care real estate offers attractive yields, but lending in the sector requires a specialized understanding of important operating, regulatory and reimbursement dynamics. Banks that develop or retain this expertise will be well positioned to serve this market as it grows to meet the needs of an aging U.S. population.”

The health care real estate finance market includes loans to a wide range of owners primarily in the health care services industry, with transactions secured by health care-specific property. According to U.S. Census Bureau projections, the population of individuals 75 years of age and older is expected to more than double by 2035 with an average annual growth rate of 3.1 percent, which is four times the growth rate of the overall population.

“We’re looking forward to combining Doug’s expertise and the lending power of our membership to provide smaller banks with access to a broader array of loans that otherwise might be out of their reach,” added Bettinger.

The cooperative of community and regional banks was formed to evaluate and fund corporate commercial and industrial loans and leases. Loan and lease opportunities are identified, underwritten and serviced by AP Commercial LLC, a wholly owned subsidiary of Alliance Partners LLC and a registered investment adviser. The cooperative’s underwriting and credit policies are established by a Board of Directors, which is composed primarily of member banks.

About BancAlliance

The BancAlliance network is a shared corporate and specialty lending platform that identifies, evaluates, and refers loan and lease opportunities to its community bank members. In addition, members have access to ongoing monitoring of all loans and leases sourced through the network. Our mission is to enable our members, the banks that direct our activities, to prudently diversify into high-quality corporate and specialty loans and leases in a manner consistent with the highest commercial and regulatory standards – without changing the nature or mission of the traditional community bank. BancAlliance has over 125 member banks located in 32 states. Learn more at www.bancalliance.com.

About Alliance Partners

Alliance Partners is an asset management and advisory firm focused on helping regulated financial institutions optimize their asset strategies and build more profitable and more balanced loan and investment portfolios.

Contact:
BancAlliance
Laura Fisher, 202-812-9813
lfisher@alliancepartners.com
View Comments