STEPHEN ROSENBERG Founder & CEO, Greystone & Co, Commercial HUD Lender On Acquisitions in Skilled Nursing: “We’re currently seeing a surge in acquisitions activity within the middle-market of skilled nursing. After several years of large, national REITs owning in the space and smaller (or non-profit) players struggling to scale their operations effectively, there is now an

HARDING EASLEY Account Executive, Yardi Matrix On evaluating age-restricted multifamily properties: “When we look at markets in terms of senior living opportunities, we look at data on properties with 50 units or more that are age-restricted, usually meaning they are only available to residents 55 and up. Once you have set that parameter,

LINDA LIBERATORE Founder and president, Secure Pay One

homes, care homes, and memory care facilities. They often operate internal subcommunities in tandem, so residents do not have to leave the community as their needs evolve. Active Living Community: Independent living communities designed for active, healthy seniors able to live independently on their own. Usually they are the same as a traditional neighborhood, with clubhouses, gyms, and social activities, but with age restrictions – usually 55 and up. They may offer additional amenities including transportation, lawn care, maid services, laundry services, and group meals, and some (see senior living communities) are designed to offer a “stairstep” progression from living in a separate household, such as a townhome, to a multifamily building also in the development.

On fair housing laws and age-restricted housing: “Of course, Fair Housing law is a great tool and guideline to ensure all applicants are treated equally. Senior living is a growing trend, and large senior facilities often carry with them covenants, boards, and even associations to ensure that their age restrictions work.”

opportunity for mid-sized players to take over. The skilled nursing sector is highly regulated from state-to-state, so regional owners with a reputation for operational excellence will ultimately succeed. “We are one of the largest providers of funding and financing

What’s coming: “I do get concerned as the small DIY landlord enters this space that they are careful to always consult with their attorney to craft ads and applications to ensure they stay within the codes specific to their municipality and state.”

a lot of the considerations are the same as for any other investment. Youmight look at comps in the area, rent trends, demographics, population growth in your target age group, howmuch new, directly competitive construction is going on in the area, asset classes, etc. However, you alsomay want to look at how rents are paid. For example, are they subsidized? Are the age- restricted properties supplemented in part or whole and through which programs? Just like with any property, investors should look at senior living properties through the lens of supply pressures, population growth, and affordability to the local population.” What’s coming: “Senior living investors must be cognizant of whether or not their investment strategy permits them to offer affordable rents to their local target population. Elderly tenants often live off supplemental income, Social Security, etc. Some investors may struggle if they fail to factor in the ‘fixed-income factor’ and assume they will be able to force appreciation on a senior living property by raising rents."

to nursing homes and skilled nursing facilities, but not everyone knows we also own and operate about 4,000 beds.” What’s coming: “We have launched an effort on behalf of some of our clients to start acquiring more of these properties over the next couple of years and are collaborating to develop technologies to help facilities flag and resolve operational issues." Nursing Home: A facility offering residents skilled nursing care. Residents may require 24-hour monitoring, on-site medical assistance, and convalescence services. Skilled Care: Also known as skilled nursing. Skilled nursing providers are licensed nurses. Facilities that provide skilled care are healthcare institutions with at least one full-time registered nurse on staff as well as at least one full-time doctor on staff. This type of facility provides nursing care 24 hours a day, has a place to store and dispense medications, and may help with meals and personal hygiene. Unskilled Care: Also called non-skilled care or non-medical care. This involves aid with daily tasks, including bathing, eating, cleaning, and preparing meals. ASSOCIATED DEFINITIONS:

DOUG DUNCAN Chief Economist at Fannie Mae On Aging in Place: “The boomers have said all along they intend to


Senior Living Communities Age-Restricted Multifamily Active Living Community

age in place, and they are. They are spending money on remodeling their current homes and staying in place. This is creating a housing supply issue in

markets where single-family home inventory is low and millennial job opportunities are rising.”

What’s coming: “When you have a low level of turnover of existing homes and low inventory of newly constructed homes, you have a supply problem that affects housing affordability.”


Age-Restricted Multifamily: (also known as senior apartments) An apartment complex with a minimum age requirement. These are financed like any other multifamily development and may be subsidized by HUD. Senior Living Communities: Senior living communities include independent living, assisted living, retirement communities, nursing


Aging in Place: Professed preference to remain in one’s own home as one ages. This may require changes to the physical structure, such as widening doorways or installing grab bars.

88 | think realty magazine :: december 2018

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