Seniors housing branding needs to answer an uncomfortable, but obvious, question: Will my parents be safe here? By Lynn Peisner Senior living has been weathering a public relations fiasco since March. Media portrayals of senior communities as hotbeds of coronavirus infections played a role in ceasing move-ins as the general public has presumed that the “nursing home” presented in news reports is synonymous with all levels of seniors housing. Marketing and branding experts, along with owners and operators, are working hard to turn that around. “All senior living got lumped …
From The Magazine
By Matt Valley Make no mistake about it, transaction volume in the seniors housing investment sales market has been significantly hampered by COVID-19, the respiratory disease linked to 197,000 deaths nationally as of Sept. 17. Year-to-date through July, property and portfolio sales in the seniors housing and care sector totaled just under $5.3 billion, down 52 percent from nearly $10.8 billion during the same period a year ago, according to Real Capital Analytics (RCA). The number of properties that traded over that same period fell from 703 in 2019 to …
Despite the significant challenges of converting old buildings into seniors housing, developers roll the dice and build a more inviting product. By Jeff Shaw Because of the special needs of the sector, seniors housing developers nearly always say they prefer ground-up development rather than redevelopment projects. It allows them to build a property exactly how they want in order to meet the needs of modern seniors. But sometimes an opportunity presents itself to convert an old building into something new, often restoring a historic property to new glory. Because of …
COVID-19 resulted in a sudden increase in demand for internet connectivity in seniors housing — catching some operators flat-footed. By Jeff Shaw The effects of the COVID-19 pandemic on seniors housing were sudden and dramatic. We’ll likely continue to feel them for years to come. As communities closed themselves off from the outside world to protect residents, a new challenge emerged: How do we keep our residents healthy and safe without isolating them from friends, family and entertainment? The answer came in part from the web, as operators looked to …
As developers dial back on new supply and absorption continues at a healthy pace, the vacancies begin to recede. By Bendix Anderson The phone continues to ring at the leasing office at Woodside Place of Washington in Washington, Pa., even though businesses across the U.S. have closed their doors to slow the spread of the novel coronavirus. Half of the 36 units at Woodside Place were already occupied in March 2020, even though the new standalone memory care facility had only opened its doors a few weeks before in February. …
Anthem experiences huge occupancy growth as the company champions the importance of standalone memory care. By Jeff Shaw Standalone memory care has been through the wringer in recent years. Although nearly every assisted living community now includes some memory care units, properties that exclusively offer this specialized care have fallen out of favor. Lenders and investors have begun to shy away amid low occupancy rates, instead favoring properties that offer a full continuum of care (often including independent living as well). Standalone memory care occupancy rates have fluctuated between 80 …
Softening real estate fundamentals combined with facility lockdowns stymie deals. By Matt Valley The longer the COVID-19 pandemic goes, the bigger the toll will be on investment sales activity, say commercial real estate finance professionals. PGIM Real Estate early this year completed its capital raise for Senior Housing Partners VI, a closed-end fund with a total of $996 million in commitments. But Steve Blazejewski, managing director at PGIM Real Estate, says the investment firm’s acquisition pipeline is currently “on ice.” “It’s really difficult to pursue an acquisition of some size …
COVID-19 outbreak slows transactions, forces companies to take defensive posture. By Matt Valley The stabilization of the U.S. economy and its pace of recovery is inextricably linked to the speed at which the spread of the COVID-19 pandemic can be contained, say seniors housing experts. Until the health crisis is under control, they expect transaction activity to slow considerably or possibly even grind to a halt. As of April 8, the respiratory illness had claimed the lives of 13,000 Americans, a clear majority of whom were senior citizens. Sadly, that running …
Overseas buyers take an increasingly measured approach to U.S. seniors housing industry by cultivating partnerships with seasoned operators. By Jane Adler Cautious. Selective. Patient. These three words characterize today’s overseas capital sources seeking investments in U.S. seniors housing and skilled nursing properties. While foreign investment in the sector here has slowed, even in the best economic times the decision-making process is typically lengthy. The “tire-kicking” phase can last several years, potentially extended by the recent coronavirus outbreak. Overseas buyers are also still quite choosy. They’re focused on the best properties …
In the face of growing competition, assisted living owners and operators are renovating and repositioning their aging properties. By Jane Adler Over the last few years, the construction boom that delivered thousands of new senior living units to the market has produced tough competition for existing projects. New buildings open near old ones. A 20- or 30-year-old assisted living building can easily look tired, especially when compared with the state-of-the-art project down the street. Owners and operators of older properties are taking different approaches to maintain occupancy. The amount spent …