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Keys to Success in Seniors Housing Finance

From October 17-19, seniors housing real estate leaders will gather at the 2018 NIC Fall Conference. Experts including Morgin Morris (pictured below, left) and Lee Delaveris (pictured below, right), from KeyBank Real Estate Capital, will answer questions that investors and operators need to know to continue finding success in seniors housing and skilled nursing facilities. Get a sneak peek below:

What do new investors and operators need to know about the history of senior housing?
Morgin Morris: In the next 10-15 years, the number of eligible seniors will increase nearly 75% to 2.5 million, though right now, there is a slight pause in demand. Two main factors for this “pause” are residents waiting longer to move into buildings (causing occupancy in senior housing across the United States to report a 10-year low), and the inventory in the United States is stale but functional. Soon, new buildings will be required to meet future demands. One positive factor is the overall penetration rate hovering at 11% for the past 10 years. In my opinion, this is the single most attractive statistic for an investor.

Why does the senior housing sector continue to attract new capital (both foreign and domestic)?
Morgin Morris: Over the past 15 years, seniors housing has emerged as a strong core real estate investment. Seniors real estate assets performed well in the recent recession, and strong operators were able to manage the economic turbulence. Demographics are on our side, and the financial yield on seniors’ investments remains strong. As with any asset class, there can be notable growing pains, particularly in national operations and owners growing at rapid pace. From a finance perspective, many banks and permanent lenders have recognized the opportunity for investment, and have carved out specialty groups and officers to facilitate lending in the space.

What are some principles of success for emerging skilled nursing operators?
Lee Delaveris: Partnerships with other healthcare providers are likely part of the success formula for many operators going forward. There are various types of partnerships being utilized and explored, ranging from simple referral relationships to joint ventures – and now recently, major acquisitions of skilled nursing facilities and other senior care facilities by hospital systems. Implementing these strategies may also require a capital investment of some kind, whether that is constructing a new facility, renovating or adding on to an existing facility, or investing in new equipment and technology.

To learn more about how new investors and operators can find success in senior care and skilled nursing, you can attend the following sessions at the 2018 NIC Fall Conference in Chicago from Oct. 17-19.

Thriving in Skilled Nursing
Friday, Oct. 19, 9:45 a.m.-10:45 a.m. Central

Investing in Senior Care: Past, Present and Future
Wednesday, Oct. 17, 2:30 p.m.-3:45 p.m. Central

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For questions, comments or concerns, please contact Jennifer Duell Popovec


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