Investing In The Senior Care Development Market
The development activity in seniors housing is increasing, and anyone thinking about investing or lending in this market should attend tomorrow’s webinar. Will 2016 be the year that sets the stage for the future of the seniors housing development market? There have been two sides of the story, those who think that demand will increase enough to counter the current uptick in development we have been witnessing. And those who see the rate of new development accelerating this year and into 2017 and 2018 that will have significant negative ramifications in some markets. Regardless of where you stand in this argument, construction starts seem to be rising, and seniors housing is still a... Read More »The added cost of memory care
If you have been following the seniors housing construction market in the last couple of years, you probably have noticed that most of the development that has happened has been assisted living, memory care or some combination of the two. So with all of that building, is there any difference in the average cost to build for either acuity? And are developers actually putting money where their mouths are when they talk about their specially designed, technology-rich memory care projects? When comparing average development costs (which are made up of seniors housing new construction projects announced since late 2013, and include both hard and soft costs), stand-alone MC communities did... Read More »From good to great
National Health Investors (NYSE: NHI) added a well-run independent living community in Chehalis, Washington (40 miles south of Olympia) to its portfolio for a purchase price of $9.25 million, or $96,400 per unit, with an 8.7% cap rate. Built in phases from 1986 to the early 2000s, the community features a mix of apartment-style units and cottages, and is 95% occupied. It operates at a 35% margin on approximately $2.3 million of revenues, which can improve. Plus, sitting on 24 acres next to a medical center, there is also room to expand for NHI, which leased the community to a partnership between Marathon Development and Village Concepts Retirement Communities for a period of 15 years and... Read More »
CBRE sells MorningStar trio
For over $400,000 per unit, a joint venture between MorningStar Senior Living and Arcapita, a Bahrain-based global investment manager, purchased (in two transactions) a portfolio of three newly built assisted living/memory care communities in Colorado. One of the properties, a community in Jordan with 55 AL units and 29 MC units, opened in July 2014 and was already 80% occupied at the time of the sale. It sold for approximately $34.5 million, or $411,000 per unit. While the other two properties, located in Colorado Springs, included a 48-unit MC community that opened in September 2014 and an already stabilized community with 45 AL units and 19 MC units that opened in late 2013. Combined... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
