Don’t Miss Senior Housing’s Perfect Storm

With so many seniors in the United States today, there is a great and pressing need for assisted living. Growing demands for senior healthcare facilities prompts people of action to create supply. Though the senior housing marketplace may have been underestimated in the past, recognizing the urgent need for these facilities has changed investors’ minds; as a consequence, nursing home brokerages business is booming.

Several important factors contribute to a successful senior housing market such as market climate, buyers and sellers and whether or not there are assisted living homes for sale. There are very few times when these factors align in such a way to create the perfect opportunity for anyone looking to get involved.

Buyers and Sellers Get the Best of Their Own Worlds

Owners with residential care homes for sale experience the benefit of all-time low capitalization rates, maximizing on profits from high sales prices. Those wanting to buy healthcare properties have the advantage of low interest rates from lenders who see the current and future strength of this market.

Because there is plenty of debt and equity in the market, there are several groups of financiers eager to join the game. Larger private equity firms, real estate investment trusts (REIT) and even high-net worth individuals are all investing into the senior housing market, creating plenty of opportunities for bigger profits and growth out of assisted living properties for sale.

There are Numerous Skilled Nursing Facilities for Sale

Sufficient inventory gives buyers choices and because they have the financing needed to complete the deal, transactions take place regularly.

Even though skilled nursing facilities have recently experienced a reimbursement shake-up that resulted in distressed assets, particularly in California and Illinois, it also created a high inventory for buyers, offering a wealth of choices, making it easier to buy skilled nursing facilities. The availability of both debt and equity at competitive rates has made it the perfect time to purchase assisted living facilities and skilled nursing facilities.

Buyers for assisted living facilities are encouraged by the presence of debt, but low inventory of high-quality facilities stifles speedy transactions. However, the facilities that do become available trade at low cap rates.

Operators Sustain Facilities with High Quality Service

Operators are the most important player in the success of any facility after the sale. Because they are responsible for managing the facilities on a day-to-day basis, their role is vital in sustaining high quality homes with dependable services that meet the increasing demands for assisted living and skilled nursing. Inevitably, their profits substantiate a healthy market and prove that it is an investment in both the short and long terms.

The number of seniors needing professionally-operated assisted living and skilled nursing will triple in the next 20 years. Though skilled nursing operators may face challenges with some undergoing bankruptcy, the vast majority performs well, maintaining high quality facilities and services.

The JCH Consulting Group Approach to Senior Housing

As a full-service senior housing brokerage, JCH continues to make honest and career-long relationships with buyers and sellers in an effort to establish caring environments for every senior seeking assisted living.

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