Alder View Capital and NewPoint Real Estate Capital have merged in what newly-appointed NewPoint CEO Nick Gesue called a strategic integration for a full-service senior housing and care lending and advisory platform.
The move brings together Alder View’s advisory experience and NewPoint’s lending suite of services, with the goal of expanding senior housing investment and partnerships with operators, Gesue said. In addition to senior housing investment, NewPoint also has exposure in multifamily and residential housing.
With the merger, current Alder View clients will have access to a range of lending products, including Fannie Mae, Freddie Mac, and U.S. Department of Housing and Urban Development (HUD) financing options, along with loan servicing support.
Gesue said there was a “huge opportunity” for the senior living industry, given demand fundamentals and favorable demographic trends.
“We had momentum with Alder View, and I looked at NewPoint and saw they plugged together really well. We’re planting the seeds into a more mature platform to be a full-service lending platform,” Gesue told SHN. “We’re at the start of an exciting period for the senior housing business, and it’s going to be really fun to be a part of.”
Senior housing transactions and lending activity have “fallen off a cliff” compared to pre-pandemic norms, even as interest rates remain unchanged, despite optimism of an impending cut before the year is out by the U.S. Federal Reserve, Gesue said.
Gesue added that while current transaction levels in senior housing remain lower compared to past years, there is optimism ahead.He’s anecdotally noticed fewer distress-driven deals and stabilized properties starting to trade hands more frequently than in the last 24 months.
“There’s a presence of more cash-flowing, quasi-stabilized or stabilized properties that are trading, and valuations have increased—that’s exciting,” Gesue said. “I think everyone is starting to respond to the new normal of higher equity amounts in transactions, higher financing costs, and transactions, but we’re still getting closer to being able to get deals done.”
In a new moment of operator-owner alignment, Gesue said the now-stronger NewPoint would emphasize transparency and support with future partners, executing on providing advisory services and various lending options.
“It can become a little bit of an exercise in financial engineering in order to sort of wring the cloth dry of the ability to increase value, and operators are a key part of maintaining and improving value,” Gesue said. “It’s such an operationally intense environment, and yet it is still a real estate class that is able to be leveraged.”
The key to future success in upcoming cycles, Gesue said, would depend on “being open on all sides” between capital partners and operators.
NewPoint has also brought over Alder View Capital executives Kevin Laidlaw and Cal Masterson to continue in the future growth of the newly integrated organization, with plans to expand the senior housing-focused team members, Gesue said.
“We’re going to be looking to grow NewPoint and its focus on senior housing and care,” Gesue said, being able to “grow faster” with the increased lending capabilities available at NewPoint’s disposal.
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