WASHINGTON, D.C. — A key performance metric helps explain why the active adult segment of seniors housing remains an investment darling. Among the nearly 800 properties and more than 116,000 units tracked nationally by NIC MAP Vision, the occupancy rate is 93 percent. By comparison, the occupancy rate for seniors housing properties (independent and assisted living) is in the high 80s. What makes that 93 percent occupancy even more significant is that it includes active adult properties that either recently opened or are in lease-up mode. “If you look at properties that …
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Tempo of Deal Velocity Increases as Industry Enters Homestretch of 2024
By Matt Valley Following a quiet end-of-summer period on the dealmaking front — “quieter than it has been for years with the exception of the pandemic” — Sabra Health Care REIT Chief Investment Officer Talya Nevo-Hacohen encountered a flurry of transaction activity in late August and early September. “It’s been gangbusters, and what we’re seeing is primarily seniors housing assets (independent living and assisted living) coming to market,” said the veteran REIT executive who participated in the webinar Seniors Housing Business hosted on Sept. 5, titled “Creating Value in Seniors Housing — …
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 …
CHICAGO — Not-for-profit senior living providers have grown primarily through community expansions from existing campuses as well as affiliation and acquisition activity, according to the 21st Annual LeadingAge Ziegler (LZ 200) report. Developed annually through a partnership between LeadingAge and Ziegler, the report is a ranking and analysis of the nation’s 200 largest not-for-profit senior living organizations across the country as of Dec. 31, 2023. Nearly 30 percent of the total number of units for all senior living systems among this year’s LZ 200 are represented by the 10 largest …
Webinar: Creating Value in Seniors Housing — The Economics of Dealmaking in This Cycle
The Sept. 5 webinar “Creating Value in Seniors Housing — The Economics of Dealmaking in This Cycle,” sponsored by CBRE, brought together industry leaders to discuss the current trends shaping the seniors housing market, including occupancy rates, strategic investments and the evolving landscape of assisted living, memory care and independent living communities. This discussion covered innovative technologies, economic factors influencing cap rates, considerations about the future of care and analysis of increasingly sophisticated operations strategies. Expert panelists shared their experiences and projections for the sector, including the increasing demand for seniors housing …
Promote from Within or Hire from Outside? Employee Retention is Top of Mind for Seniors Housing Operators, Says InterFace Panel
ATLANTA — Staffing, particularly at the regional director level, kicked off the discussion at the “Best in Class Operators’ Blueprints for Success in a Challenging Market” panel at the 11th annual InterFace Seniors Housing Southeast conference on Wednesday, Aug. 28 in Atlanta. Pilar Carvajal, founder and CEO of Innovation Senior Living, said her firm is focused on developing from within and rewarding those who have worked hard for the company. “We are keeping a very close focus internally. We think that’s where we will find our talent as we grow,” …
WASHINGTON, D.C. — The American Seniors Housing Association (ASHA), in partnership with Seniors Housing Business, has released the 2024 edition of the ASHA 50, which ranks the 50 largest owners and operators in the U.S. seniors housing space. Based in Washington, D.C., ASHA is a trade association that advocates for and represents companies that develop, own, operate and finance seniors housing. The ASHA 50 rankings are based on self-reported portfolio sizes, ranked by total number of units, as of June 1, 2024. Data was also gleaned from other reliable sources, such …
Careful Balance of Business Fundamentals, Quality Care Is Key to Success, Say InterFace Panelists
ATLANTA — Seniors housing is a sector that has a long track record of carefully balancing care for its residents with the fundamentals of real estate, namely the return on investment in the form of monthly rental rates. Equity and debt partners have appreciated the sector as an investment vehicle for decades, but are now fully grasping how important operators are to realizing those gains. This was the topic of discussion among the “power panel” of executives at InterFace Seniors Southeast, an annual conference that was held at Westin Buckhead …
CHICAGO — While interest rates have hogged the headlines of late, the seniors housing industry’s labor challenges have not disappeared. During the COVID-19 pandemic, many in the sector — particularly caregivers — left for other careers. To fill the gaps, many operators resorted to third-party agency labor, which is more expensive and means that employees may not be dedicated to the community at which they’re working. Justin Hutchens believes in a few solutions to these challenges. Hutchens is an industry veteran currently serving as executive vice president of seniors housing …
Increased interest rates have made the cost of capital high, slowing both acquisitions and new development in the seniors housing space. “Since interest rates took the bubbles out of our champagne in 2022, many in our industry have been hunkering down as valuations have been challenged, exit plans have been destroyed and carrying costs of non-cash-flowing properties have spiked,” said JP LoMonaco, executive vice president at CBRE. But for those able to make acquisitions work, now may be the perfect time to buy. “We’re past the COVID recovery now,” said …