For senior living investors, it’s not about if but when companies will re-enter a market poised for developments, according to some experts.
“There is a widely held view that we are in early days of a bull run in seniors housing (e.g., double-digit annual [net operating income] growth over the medium term),” Ted Flagg, senior managing director for JLL Capital Markets, told GlobeSt.
It’s just a matter of timing, he said, and signs are pointing to the industry reaching an inflection point. For example, the publication pointed out, Monarch Alternative Capital and American House Senior Living Communities recently announced that they are forming a joint venture to acquire, develop and manage senior living communities across the United States.
“The newly formed joint venture has the capital, sourcing capabilities and operating expertise to capitalize on the severe disruption in the senior housing industry caused by COVID-19 and the anticipated supply-demand imbalance resulting from construction and demographic trends,” GlobeSt. reported.
Kevin Kinigstein, lead partner of Cox Castle & Nicholson’s senior housing practice group, told GlobeSt. that he believes that “the majority of transactions that will be completed over the next six to 12 months will be by investors who were already invested in (or interested in investing in) the sector pre-pandemic.”
