To win the competition for residents and talented staff, companies big and small need deep local roots. By Bendix Anderson In order for a seniors housing facility to succeed, the operator needs strong ties to the local area. “Local expertise has become increasingly important in recent years,” says Dan McKeever, executive director and portfolio manager for the senior housing funds of PGIM Real Estate based in Madison, N.J. Industry giants are increasingly committed to hiring staff at their properties that really know local markets. Growing companies now take care not …
From The Magazine
From social media to mobile ads, how the smart use of technology can help owners/operators boost the bottom line. By Jane Adler It’s hard to keep up with digital marketing trends. Look no further than a recent episode of the Viceland television show, “The Most Expensivest,” hosted by rapper 2 Chainz. The 30-minute prograam titled “The Most Expensivest Retirement” highlights an upscale retirement community in Florida — The Palace Coral Gables. During the show, 2 Chainz chats with residents, questions staffers and samples the chef’s cooking. In the words of …
After years of boom-or-bust transaction levels in seniors housing, trading has settled into a rhythm. By Jeff Shaw Although it’s easy to look at year-over-year transaction volume in seniors housing and say “acquisitions are down,” 2018 was more a return to the average rather than a lull. When the feverish trade volume in 2011 to 2015 (peaking at over $25 billion in 2011) and the recession slowdown of 2008 to 2010 (bottoming out below $5 billion) are taken together, the last 11 years average approximately $14 billion per year in …
Despite rising land, labor and materials costs, construction firms are finding ways to stay on budget while maintaining quality. By Lynn Peisner Commercial real estate developers and builders active in seniors housing face the same problems squeezing other property sectors. Permitted land is more expensive and harder to find. The cost of capital is rising. Fewer skilled laborers are available. And materials costs are steadily increasing. Meanwhile, construction firms put in many hours on the job site to ensure projects are completed on time and on budget. The total cost …
The preferred investment strategy in today’s tumultuous seniors housing industry can vary greatly by investor type. By Jeff Shaw It would be a gross oversimplification to say that trading is trending down in the seniors housing industry. While the dollar volume of property and portfolio sales may have dipped, the sector is still bustling as new investors try to work their way in, and capital providers look for smart ways to spend their money in senior living. Heading into the final quarter of 2018, the industry was on pace for …
While the existing stock of skilled nursing facilities is mostly outdated, only a handful of investors and providers are putting up new buildings. By Jane Adler While the construction of new assisted living, memory care and to a lesser extent independent living projects has been on a tear over the last several years, another part of the seniors housing industry has lagged far behind. Groundbreakings are only occasional events for new skilled nursing projects even as the number of facilities declines and many of the remaining ones are functionally obsolete. …
In an effort to align common interests and boost revenues in a choppy market, healthcare REITs are switching operators. By Jane Adler In a challenging environment, healthcare real estate investment trusts (REITs) are changing partners and optimizing their operator mix. Regional providers are gaining favor as the REITs diversify their partnerships and look for geographic balance in their portfolios. The structures of operating agreements are also under review. Joint-venture partnerships and income-sharing agreements have always been important, but are now being re-examined and fine-tuned to better align the interests of …
Koelsch Communities leverages 60-year history in seniors housing to master development, memory care. By Jeff Shaw For Aaron Koelsch, his involvement in seniors housing started early. His parents bought a nursing home in 1958 and raised the entire family — including all five of their children — on the property. “We were born there, and we were expected to do anything from cleaning baseboards to giving care to cooking,” recalls Koelsch. “We always had a lot of work. Frankly, growing up in the industry, it didn’t seem very attractive to a …
The seniors housing industry today is benefiting from a “more disciplined, rational debt sector” than in the past, emphasizes Chuck Hastings, vice president of finance and business development for Juniper Communities, a seniors housing operator of 22 properties in four states: Colorado, Florida, New Jersey and Pennsylvania. Twelve years ago, Hastings recalls that a borrower could secure acquisition financing at a 90 percent loan-to-value ratio, and the loan would be nonrecourse. “Those days are gone,” he says. Today, borrowers seeking acquisition financing can realistically expect to obtain a nonrecourse loan …
From the use of special lighting in the common areas to spa-like amenities to community gardens, designers are all in on creating a better physical environment for residents. By Lynn Peisner Wellness is no longer a buzzword used to promote yoga retreats, organic foods or cruelty-free beauty products. It’s a big movement, often backed by big money, that evolves every year and permeates every demographic group, including seniors. Daily headlines reveal just how much wellness is embedded in today’s zeitgeist. Effective October 1, Weight Watchers changed its name after 65 …