Senior Living investment

Senior living has outperformed every other real estate segment in total returns, but takes specialized knowledge, experience, and contacts. If you’re interested in buying or selling senior living and long-term communities visit Enhance Senior Living.

Real Estate is cyclical in nature, and takes specialized knowledge in many different areas including:

market timing

As investors exit the industry, owner/operators exhaust their relief funds, and lenders recap over-leveraged assets, it’s no secret there’s a huge influx of distressed supply entering the markets (with a decrease in demand). This large shift in market dynamics is leading to a rapid deterioration in pricing and creating an ideal environment for sophisticated buyers to achieve accelerated growth. 

reduced cost basis

With the current distressed Florida market pricing at 20-40% of replacement cost and 30-60% of previous acquisition cost, purchasing now significantly reduces each investment’s cost basis. This reduced basis is important as it provides the investor an opportunity to cut market rates while still achieving the same investment returns (compared to a higher basis). We feel offering a quality product with market rates well below the competition is a winning strategy to success (sorry competition)! 

focused geography

Senior living is best served by regional operators. History has shown us that cross-country management just isn’t as effective in senior living. By initially limiting our footprint to Florida, we are true leaders and experts in each market, fully understand the local and state regulations, can quickly pivot and revise each business plan, and have the ability to frequently visit each community for ongoing guidance, training, and leadership support. 

operational value arbitrage

Leveraging our team experience in senior living investment, appraisal, and operations, and transitioning out national and remote operators with our local operations team, our acquisition criteria is focused on opportunities that have immediate arbitrage value. These opportunities are often ‘off market’ and sourced directly from our contacts. Finding these arbitrage opportunities comes from our experience reviewing thousands of operator financials and understanding the metrics related to efficiency. If inefficiencies are discovered in any department, we’ll tailor the business plan to immediately address these issues (enhanced scheduling policies, better expense management, new vendor partnerships, upgraded policies and procedures, new technology platforms, community leadership changes, etc.) for increased performance and value. 

portfolio premium

Senior living portfolio transactions receive a premium over single-asset transactions and are most desired by institutional investment firms. These larger firms have access to the cheapest cost of capital, which provides them the ability to pay the highest prices. Our investment strategy includes the experience, contacts, and resources necessary to build a quality portfolio and then exiting through a portfolio transaction for maximum proceeds.