To Build, or To Buy

One thing on the minds of many is that in these heady times in senior care M&A and development, investors are faced with a dilemma: whether to build, or buy (or both).

Ben Swett here filling in for Steve Monroe, who is currently wandering around the Argentum conference in San Diego. One thing on the minds of many there is that in these heady times in senior care M&A and development, investors are faced with a dilemma: whether to build, or buy (or both).

Buying existing properties comes with its obvious benefits, like cash flow and local brand recognition. But, what a senior wants in a community has changed over the years, meaning that those properties built 10, 20 or 50 years ago may struggle to sway potential residents from those new developments.

Aside from the bells and whistles typical of a new community, new developments also usually feature larger units, more common areas and more modern physical plants. But, there is that ever-present fill-up risk (and cost) to consider.

So, by using both our private M&A and development databases, we have attempted to get a better understanding of the costs associated with both buying and building senior care properties.

In the coming months, we will be publishing state-by-state reports and taking a deeper dive into those markets, exclusively for The SeniorCare Investor subscribers. First up, will be Florida. Stay tuned.

 

 

2 comments on “To Build, or To Buy

  1. Steve,

    Having been through these cycles since the late 1980’s, I really look forward to these articles. The topic is important and timely given the industry headwinds.

    Regards,

    Jim Stroud

Leave a Reply

Your email address will not be published. Required fields are marked *