NEW YORK CITY — Seniors housing finance veterans Rick Shamberg, Greg Rush and Kari Schmidt have launched Scarp Ridge Capital Partners, a New York-based investor. Focused on value-add and opportunistic real estate, the company plans to invest in hospitality and healthcare with a heavy concentration of seniors housing. Launching with a $300 million fund, Scarp Ridge plans to acquire non-performing loans; create structured financing solutions including debt, mezzanine and preferred equity; and acquire direct ownership interests in assets and portfolios. “Scarp Ridge believes there will be opportunities to acquire distressed …
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In the Seniors Housing Sector, a Sense of Recovery is Growing
For more than a year, seniors housing operators have battled rising vacancy, pressure on net operating income and uncertainty about the future as potential residents steered clear from property tours and lease commitments. Those difficulties have created a tough financing environment for the segment. But a growing number of seniors housing discussions today are centered on how operators and the industry are recovering, according to Christopher Callaghan, head of healthcare banking at M&T Bank. To what degree a recovery is occurring, however, depends on several variables. “There is still a …
TOLEDO, Ohio — Welltower Inc. (NYSE: WELL) has made an investment in Monarch Communities, a developer, owner and operator of seniors housing communities. Industry veterans Michael Glynn, Ross Dingman and Andrew Teeters launched the company in 2019. This new relationship is focused on developing, re-developing and managing independent and assisted living communities. Welltower’s investment in Monarch will give Welltower exclusive access to Monarch’s expertise in developing and operating senior living communities in premium micro markets throughout the United States. “Monarch is an ideal fit to our long-term vision in senior …
CHICAGO — Although the seniors housing industry still faces many challenges, long-term demand still has the sector on a trajectory of growth. That’s according to JLL Valuation Advisory’s fourth annual Seniors Housing Investor Survey and Outlook, released last week. Construction delays resulting from the pandemic will magnify the long-term supply shortage, the report notes. With the baby boomers within approximately 10 years of occupancy, medium- and long-term investment remains positive. Additionally, the need to serve the middle-income population will continue to grow, exacerbated by the global impact of COVID-19. “Investors …
RED BANK, N.J. — Locust Point Capital has closed Locust Point Seniors Housing Debt Fund II, the firm’s second fund focused on its direct lending strategy to the seniors housing and care sector. The Red Bank-based firm launched its $312 million debut fund in 2016. Fund II closed above its target at $428 million after receiving strong interest from a diverse group of investors, including pension funds, endowments, foundations, insurance companies and wealth advisors. Approximately three quarters of the commitments came from United States-based investors, with the remaining coming from …
MIAMI — Lloyd Jones LLC, a Miami-based private equity firm, has named Andy Carroll chief investment officer to guide the firm’s multifamily and seniors housing investment strategies. Carroll is the former director of investments for American House Senior Living, one of the nation’s largest owner-operators. Previously he served as director of underwriting for the firm’s affiliate and has closed over $1 billion in seniors housing investments since 2008. During his more than 15-year tenure with the firm, he managed underwriting, due diligence, closings and recapitalizations across a variety of real …
Sector has proven to be more resilient than others during the pandemic. By Dale Watchowski In 2020, the U.S. economy contracted dramatically due to the COVID-19 pandemic, with many industries negatively impacted, including senior living. However, few real estate sectors have proven more resilient in times of turmoil than seniors housing. Since the 2008 recession, seniors housing has outperformed many other types of real estate and has established itself as a compelling asset class for investors. An underpublicized attraction of seniors housing is its rising utilization. Americans are living longer …
REITs sell off portfolios while other investors pursue distressed assets amid record-low occupancy. By Jeff Shaw When the COVID-19 outbreak hit the U.S. with full force last March, investors in the seniors housing sector had some difficult decisions to make. With the occupancy rate at private-pay seniors housing falling to a record-low 80.7 percent in the fourth quarter of 2020, according to the National Investment Center for Seniors Housing & Care, the question that quickly arose in the marketplace was whether it was better to sell off properties, buy assets …
By Michael Okaty and Mark Scimeca, Foley & Lardner The private equity investment landscape for seniors housing has, like so many things this year, been profoundly disrupted by the ongoing COVID-19 pandemic. From 2016 through the third quarter of 2019, private buyers, including private equity, have consistently provided the greatest investment in the seniors housing industry, outpacing public, institutional and cross-border investment and averaging $1.5 billion per quarter. The outlook early this year was bright for private equity investment generally. With investors seeking higher returns, private equity funds going into …
SAN DIEGO —Grandbridge Real Estate Capital has hired David Rothschild and Mary Christian to lead the company’s new West Coast investment sales team based in San Diego. Both previously with Cushman & Wakefield, Rothschild and Christian focus solely on senior living transactions and have represented sellers of senior living properties across the United States, Canada and the U.K. since 1986. As the leader of the San Diego team, Rothschild oversees financial underwriting of seniors housing properties, targets qualified investors, presents marketing packages to investors, conducts negotiations and leads due diligence …