A new investment fund called Senior Living Fund is in the market and funding new developments with enticing promotional returns to investors.
There is a new investment fund on the street, called Senior Living Fund, which is mostly investing in to-be-built private pay senior living communities. In their Senior Living Fund IV – USA, investments can range from as small as $50,000 with a preferred monthly cash return of 7.5%, to more than $1.0 million with a cash return of 10.75%. Or, investors can pay a discounted per-unit price and receive more of the return on the back end with the ultimate sale of the property. That is for investors less concerned about receiving a steady monthly check. For investors, these numbers sound good, if all works out, which can get dicey with new construction. What I didn’t like is that in the promotional literature, they are using NCREIF senior housing property returns to tout the potential for their funds, but those returns are based on a very small sampling and are self-reported. They also just invested in the rehab of a post-acute facility which they said receives funding from “Medicaid” for short-term, post-acute care. I hope they meant Medicare. More to come.