Seniors Housing Business

AUG-SEP 2015

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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Page 40 of 87 41 August-September 2015 n Seniors Housing Business located in prime, metropolitan markets. "They are not typically going to go for properties that are going to price at the top of the market per unit," says Richard Swartz, executive managing director and national head of senior hous- ing equity, debt and structured fnance for Cushman & Wakefeld. Private equity buyers accounted for just 2.8 percent, or $339 million, of the seniors hous- ing and skilled nursing properties acquired in the frst half of 2015, according to data from NIC. That's down from 9.5 percent, or $579 million, in the frst half of 2014. "Private equity's share went down," says Mace. "For many public real estate investment trusts (REITs), their numbers went up." REITs have a lower cost of capital than private equity fund buyers. REITs also tend to hold the properties they purchase for longer periods of time, which may make REITs more willing to bid high for portfolios of properties they believe will grow their rents. "The REITs are favored buyers at this point in the business cycle," says Mace. "They are winning deals." Prudential solves the challenge of fnding deals by forging strong relationships with operating part- ners that often provide opportu- nities for future deals. In May, PREI invested $110 million from its SHP V fund to buy three seniors housing proper- ties totaling 391 units of assisted living and memory care hous- ing. Hearth Management, which previously owned the properties through a joint venture partner- ship, will continue to manage the properties. "It is a new operator for us," says Levy. "We look forward to partnering with Hearth Manage- ment, a proven seniors housing operator, to deliver attractive risk-adjusted returns for SHP V investors." The communities are rela- tively new. All three have opened since 2012. The properties are also located in markets far away from the largest coastal cities. The three properties are located in Hendersonville and Franklin, Tenn., near Nashville, and in In February, a joint venture between Kensington Realty Advisors and SEDCO Capital, based in Jeddah, Saudi Arabia, bought the Village at The Woodlands Waterway, a 207-unit seniors housing housing community in The Woodlands, Texas, with fnancing arranged by CBRE Capital Markets. Senior Lifestyle Corp. will continue to manage the community. Because they came highly recommended Why Did I Choose Lancaster Pollard? Lancaster Pollard Mortgage Company is a Fannie Mae/GNMA/HUD-FHA/USDA approved lender. Lancaster Pollard & Co., LLC is a registered securities broker/dealer with the SEC and a member of FINRA, MSRB & SIPC. • Bridge, mezzanine and term debt • Construction fi nancing • Sale-leaseback fi nancing • Mergers & acquisitions Providing comprehensive capital solutions • Agency fi nancing • Loan syndications and placements • Public bond offerings "During my professional career, I've been involved on every side of a fi nancing transaction. In all of those years, I've never worked with a more professional, talented and conscientious group of people." Lori Larson, Owner Eden Homes Group "We are targeting Class A properties in markets with strong demographic trends," says Max Newland, managing director, healthcare real estate, KAREA.

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