How are you using technology to lower expenses, increase revenue or otherwise improve profit margins? Tracking equals success By Bennett Porson, Chief Financial Officer, Fynn.io While our clients’ rent levels are confined to tight windows of gradual upticks, proper care scheduling, delivery and billing have proven to significantly improve their NOIs. These communities’ bottom-line improvements have been driven by effectively managing resident care and recouping care charges that would have otherwise gone undocumented and unbilled. The process begins with automated assessment-to-care plan workflows and extends to real-time actionable data. Our …
By Charlie Shoop In recent years, our economy has weathered rising interest rates and labor shortages, proving to be tough challenges for the seniors housing sector. Despite these hurdles, two-thirds of seniors housing owners, operators and other professionals responded optimistically to a survey about the current direction of the industry. KeyBank Real Estate Capital surveyed a group of seniors housing owners, operators, investors, investment bankers, lenders and brokers in late 2023 to understand their perspectives on the current state of their businesses and the industry at large. Respondents were most …
By Eric Taub There’s no other topic that has generated as much attention in the general and business press in the past year as artificial intelligence (AI). Based on the breathless coverage, one could imagine that the technology has just been invented. In actuality, it’s been around for years. AI fuels such voice recognition products as Amazon’s Alexa and Apple’s Siri, as well as chatbots, customer service scripting and Netflix’s viewing suggestions, among others. However, with the release of ChatGPT, awareness of AI technology has come to the masses. Today, …
By Bendix Anderson For more than two years, a persistent bid-ask spread between buyers and sellers of seniors housing has prevented many deals from getting done. Appraisers don’t expect a dramatic uptick in deal volume in the near term. “I’d love to see a big break in the dam, but at this point I expect more of a steady increase in the flow [of deals],” says Zach Bowyer, executive managing director and head of living sectors for Cushman & Wakefield, who is based in the firm’s Boston office. He is …
By Carl Malcolm, AIA As the senior population in the United States continues to grow, the demand for innovative and community-focused housing solutions rises. According to the U.S. Census Bureau, the number of Americans age 65 and older is projected to reach 80 million by 2040, nearly doubling from the current figure of 47 million. This demographic shift has prompted developers and architects to rethink traditional senior living models, with a particular emphasis on a sense of community and social engagement. One housing option gaining traction is the concept of …
Owners of distressed seniors housing communities continue face a challenge in refinancing bridge loans due to tightened lending standards and cap-rate uncertainty. However, this month’s long-anticipated Fed interest rate reduction will help shrink the gap between earnings and debt service, offering owners and lenders more flexibility in crafting solutions for distressed loans. One option to meet the debt-service shortfall challenge is for borrowers to explore a loan restructuring with their lender. A restructuring, while unpleasant, may be the best option for both borrower and lender. The other options — litigation, …
Roundtable participants Aron Will, Co-Head of Seniors Housing, CBRE Jana Harris, Senior Associate, Evans Senior Investments Ryan Saul, Managing Director, Senior Living Investment Brokerage Cindy Hazzard, President, JCH Senior Housing Investment Brokerage Cody Tremper, Managing Director, Berkadia Seniors Housing & Healthcare Investment Sales Philip Kayden, Executive Managing Director, Blueprint Healthcare Real Estate Advisors Mark Myers, Managing Director, Walker & Dunlop By Jeff Shaw Although seniors housing acquisitions activity has been muted recently, driven largely by the sudden spike in interest rates over the last two years, transaction brokers in the …
By Jeff Shaw Every affordable housing project relies on an intricate combination of funding, partnerships and know-how to reach the finish line. Fortunately, developers have a lot of different levers they can pull to make a project work financially. Each development typically involves a mash-up of federal tax credits, support from various municipalities (state, county and/or city) and private funding. It requires immense creativity on the part of developers. But many developers are still finding success, as evidenced by the bevy of new projects coming to market across the country. …
By Matt Valley As a bridge lender across the full spectrum of seniors housing, Live Oak Bank has been able to capitalize on the limited liquidity in today’s market that has resulted in stalled transactions and refinancing challenges in this niche property sector. “Trust me, I have a certain advantage right now with the lack of lenders [active in the space], and I enjoy that because it enables me to be very strategic on relationships and the people that I choose to partner with and grow. But having liquidity back …
By Jeff Shaw When the assisted living revolution unfolded in the 1990s, Ray Braun was there. A lawyer by trade, he was hired as a vice president and assistant general counsel at active seniors housing investor Health Care REIT in 1993, later promoted to chief operating officer, chief financial officer and then served as president from 2002 to 2009. Now known as Welltower, Health Care REIT was one of the first publicly traded seniors housing investment companies. As of June 1, the company ranked as the largest U.S. seniors housing …
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