From The Magazine

Fannie, Freddie Stall After Restart

by Jeff Shaw April 24, 2023

While financing sources appeared to return to form in early 2022, volatility in the capital markets ultimately throttled down deal volume in the second half of the year. By Jeff Shaw At first glance, 2022 looks like a partial return to pre-pandemic form for Fannie Mae and Freddie Mac’s deal volume within the seniors housing sector. After major downturns in 2020 and 2021, Fannie Mae’s volume rose 26 percent from $800 million in 2021 to $1 billion in 2022. Freddie Mac’s volume rose 29 percent from $2.1 billion to $2.7 …

April 24, 2023

Capital Corner: Seniors Housing Industry Braces for ‘Rocky’ Road Next 12 to 18 Months

by Jeff Shaw April 24, 2023

By Matt Valley March is notoriously volatile weather-wise, but March 2023 will long be remembered as a particularly stormy month for the financial markets. The collapse of two banks over a 48-hour period early in the month hit like a bolt of lightning. Santa Clara, California-based Silicon Valley Bank, a lender to technology startups, failed following a bank run during which depositors and investors withdrew $42 billion on March 9 alone. On March 10, the bank was placed under the receivership of the Federal Deposit Insurance Corp. (FDIC). Two days …

April 24, 2023

Acquisitions From The Magazine Investment

Investors Hit the Brakes on M&A

by Jeff Shaw March 1, 2023

After transaction volume rebounded greatly in 2021, sales fell 38 percent in 2022 as economic hardships mounted. By Jeff Shaw I get knocked down, but I get up again You are never gonna keep me down The lyrics to the song “Tubthumping” by former British rock band Chumbawamba are an apt description of the seniors housing industry because of its resiliency in the face of adversity over the past three years. The COVID-19 pandemic delivered the first blow in early 2020, leading to a rise in deaths at communities, declining …

March 1, 2023

From The Magazine Technology

IoT Is Next Big Tech Disruptor

by Jeff Shaw March 1, 2023

Operators leverage Internet of Things platforms to improve health and well-being of seniors while maximizing workflow and revenues. By Eric Taub The so-called smart home is fast becoming the standard home. Today, everyday appliances such as refrigerators and ovens in addition to lighting and HVAC can be controlled via the internet. Now, that same technology is increasingly being employed in senior living as a way to increase resident well-being and improve a community’s operating efficiencies and bottom line. It’s called IoT, or the Internet of Things, a phrase that defines …

March 1, 2023

From The Magazine Investment

ESG Rises in Importance

by Jeff Shaw March 1, 2023

Investors and customers are increasingly drawn to companies that embrace environmental, social and governance policies, but the success of these initiatives hinges on transparency and authenticity. By Jeff Shaw A company could be forgiven for wanting to avoid developing and implementing an ESG (environmental, social and governance) strategy. Enacting concrete policies to address the desired goals in these areas, then tracking and reporting results to stakeholders, is a time- consuming and costly process. For background, the “environmental” piece of the equation relates to how a company operates in a way …

March 1, 2023

Finance From The Magazine

Eight Consecutive Rate Hikes and Counting

by Jeff Shaw March 1, 2023

The Fed’s aggressive push to tamp down inflation through higher interest rates has temporarily sidelined some lenders, while creating opportunities for others. By Jeff Shaw A lot has changed in a year, especially when it comes to the capital markets for seniors housing. “If you look back just a year ago, you had banks that were awash in deposits, had strong liquidity levels, strong capital positions and were really focused on robust loan growth. The bank balance sheet growth at that time was near historical levels,” said Zach Shulkin, vice …

March 1, 2023

Company News Development From The Magazine

Company Profile: Distinctive Living Partners Up

by Jeff Shaw March 1, 2023

Through value-add acquisitions and ground-up developments, new owner-operator is a big believer in the power of collaboration. By Jeff Shaw For a company that’s less than two years old, Distinctive Living has grown quickly. Launched in 2021, Distinctive currently operates 27 seniors housing communities under third-party contracts, with 19 of its own ground-up projects in some phase of development through its affiliate company, Distinctive Living Development. The company, based in Freehold, New Jersey, plans to have an ownership stake in all its own development endeavors. Those 27 communities total 2,881 …

March 1, 2023

Active Adult Development From The Magazine

Active Adult’s Mounting Momentum

by Jeff Shaw January 12, 2023

NIC MAP Vision launches data initiative to track hottest subsector of seniors housing, bolstering transparency for investors. By Jeff Shaw Active adult is the talk of the town in the seniors housing industry. The sector, which caters to the 55-plus crowd that leads an active lifestyle and embraces fun and fitness, resembles traditional multifamily properties in two important ways: Active adult doesn’t offer the extra layer of services associated with standard seniors housing or the medical aspects of skilled nursing. Investors in active adult properties praise the high occupancy rate …

January 12, 2023

Development From The Magazine

Nonprofits Innovate to Pursue Growth

by Jeff Shaw January 12, 2023

Affiliations, acquisitions and new service lines are part of a multi-pronged strategy to stay competitive amid a challenging business climate. By Jane Adler Despite economic headwinds and an ongoing labor shortage, nonprofit senior living providers are focused on growth. Affiliations and acquisitions are moving forward as big providers partner with single-site operators to realize economies of scale. Meanwhile, regional providers are targeting nearby opportunities. The goal: an add-on to the portfolio within driving distance. Other growth strategies include expansions of existing properties, development of satellite campuses and the addition of …

January 12, 2023

Finance From The Magazine

HUD Loan Volume Likely to Remain ‘Muted’ in FY 2023

by Jeff Shaw January 12, 2023

By Matt Valley A spike in interest rates coupled with operational challenges in the skilled nursing and seniors housing industries stemming from the COVID-19 pandemic took a toll on lending volume in HUD’s Section 232 mortgage insurance program in fiscal year (FY) 2022. Annual lending volume fell to $2.95 billion from $3.94 billion the prior year, a 25 percent drop. The number of transactions also decreased from 328 to 269, an 18 percent decline. “The biggest surprise in 2022 was not that interest rates went up, but how drastically and …

January 12, 2023

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