BOCA RATON, Fla. — Kayne Anderson Real Estate has hired Lee Levy as a senior managing director and head of real estate debt. Based in Boca Raton, Kayne Anderson is an investment firm across multiple property types, including seniors housing. Levy will serve alongside CEO Al Rabil and CIO David Selznick as a portfolio manager for Kayne Anderson Real Estate’s debt platform, which pursues investment opportunities in Freddie Mac structured products, CMBS and direct loan originations and purchases across Kayne’s alternative niche sectors — medical office, seniors housing, student 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 …
CHICAGO — A big question hangs over the investment market: When will transaction activity pick up again? Seniors housing fundamentals are strong. Occupancies are recovering. New development is scarce. And demand is set to surge as a growing number of baby boomers turn age 80, the point at which senior living becomes an increasingly attractive option for older Americans. But worries about inflation, the direction of interest rates, lack of debt capital and the fear of buying at the wrong price are curbing investment activity. In this uncertain environment, can …
TOLEDO, Ohio — Welltower Inc. (NYSE: WELL), a Toledo-based REIT and the largest owner of seniors housing in the United States, has announced a private offering of $900 million in exchangeable senior notes. The initial offering was initially priced at $750 million, meaning interest was presumably high when the total was raised by a third after just one day. The notes will accrue interest payable semi-annually in arrears on Jan. 15 and July 15 of each year at a rate of 3.125 percent per year. The notes will mature on July …
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Webinar: Meet Seniors Housing’s Contrarians — A Handful of Investors Go Big in a Challenging Environment
The June 27 webinar “Meet Seniors Housing’s Contrarians — A Handful of Investors Go Big in a Challenging Environment” covered the difficulties and opportunities in seniors housing, including the impact of rising interest rates, the rise of regional operators and best practices for meeting regulatory requirements. The panel of industry experts also shared insights on managing troubled assets and adapting to post-pandemic challenges in the healthcare real estate industry. Despite concerns about affordability and rising insurance costs, there were signs of growth and opportunity in the sector. Speakers emphasized the …
RALEIGH, N.C. — As the number of people age 80 and older continues to grow rapidly, the United States will not have enough seniors housing to meet this demand in the next five years. This is according to detailed projections from NIC MAP Vision, a Raleigh-based seniors housing data and analytics firm. NIC MAP Vision’s report — Senior Housing Outlook — highlights a critical shortage of developments amid rapidly growing demand, emphasizing the need for immediate action and the ripe opportunity for investors. According to NIC MAP Vision data, the current seniors …
How is persistently high inflation impacting investment and development activity in the seniors housing space? An economic double whammy By Chris Blanda Senior Managing Director VIUM Capital This a well phrased question because both inflation and, in turn, high interest rates have doubled down to restrict development activity. It’s been a compounding effect that has moved several major levers to the economic viability of development projects in the wrong direction. Inflation has pushed development budgets and operating cost budgets up, while high interest rates have pushed construction leverage points down, …
CHICAGO — Focus Healthcare Partners LLC has completed the final closing of Focus Senior Housing Fund II LP, a closed-end, commingled, discretionary real estate fund targeting private-pay seniors housing. The fund raised approximately $370 million in capital commitments. The fund is 20 percent larger than its predecessor vehicle despite a challenging fundraising period for commercial real estate, thanks to strong support from new and existing limited partners, according to Chicago-based Focus. Investors in the fund include university endowments, state and corporate pension funds, insurance companies, wealth managers, family offices and …
DALLAS — While active adult has certainly gained a much higher profile in the last decade, it’s still seen by most as a niche — and perhaps mysterious — segment of commercial real estate. Many multifamily investors may be scared off by the slow lease-up and smaller potential resident pool, while private-pay seniors housing owners scoff at the comparatively lower rents. As the 55-plus rental model is one of the newest types of real estate, many of active adult’s advocates on the investment side say educating potential buyers is an …
With operating fundamentals on the rise and demographics on their side, this growing group of investors in seniors housing believes the stars are aligned to achieve healthy returns. By Jane Adler While some longstanding private equity groups in seniors housing remain on the sidelines as they work through the operational challenges created by the COVID-19 pandemic, others are making investments in the sector. Fund managers are raising capital and seeking investment opportunities. New private equity players are emerging. And more private equity groups are entering into joint ventures and forging …