RECAP: NIC National Conference 2015

Earlier this month, the JCH Team attended the NIC National Conference in Washington, DC. Over 2,400 industry professionals were in attendance, surpassing the usual census of 2,000 attendees.

With about a 35 percent increase in attendance, everyone was eager to hear about the latest market trends in the senior housing industry, strike up new relationships and chase deals in the senior housing market place.

Opportunities Are Abundant

During the conference, members of senior housing brokerages, operators, and those looking to buy healthcare properties as well as list care homes for sale were able to meet, ask questions and get a true sense of what types of opportunities were available.

These meetings revealed a huge appetite for both skilled nursing facilities and assisted living facilities for sale. Some common questions potential buyers and investors asked were:

  • What type of product was it? In what region was it located?
  • Were these assets distressed or performing?
  • What was its current valuation and cap rate?

Most attendees were able to fit in nearly 30 individual meetings during the annual conference. With over 2,400 people in attendance, buyers and sellers were quickly able to make well-informed decisions regarding assisted living and skilled nursing facilities for sale.

Expect New Facilities and Companies in the Near Future

Despite plenty of chances to buy an assisted living facility for sale or buy healthcare properties, there is a large uptick in current construction and planned construction projects in the pipeline.

One sign of a very strong market is that existing employees of operators are choosing to open their own companies with financial backers in hand. Oftentimes, these investors and operators come from a knowledgeable background in the senior housing industry as individuals who held regional positions or low-level executive positions at larger companies.

New operators want to get involved, building their own healthcare properties as senior housing investments.  In addition, with plenty of debt and equity in the marketplace, seasoned operators have a robust pipeline of acquisitions and construction projects ready to go.

The JCH Group’s Take: Solid Outlook Despite Small Corrections

There is still some concern regarding the sudden outburst of new construction by inexperienced players entering the senior housing industry. This poses a threat to the general valuation and pricing of assets, as poorly designed facilities may be built in oversaturated markets.

We generally have concluded this concern is more of a hiccup than a market shattering correction. Seasoned operators will likely have to take on these projects down the road at reduced pricing, but because of the robust nature of the marketplace and the abundance of debt, equity and opportunity, the senior housing industry will experience no market-shattering correction.

The JCH Group is a premium senior housing brokerage, specializing in high-profile deals and complex transactions. Our team provides free business valuations, expert insight and immaculate planning so that you receive exactly what you want out of your senior housing investments.

To learn about how to make your assisted living investment a cut above the rest, contact one of our experienced investment specialists at the JCH Group today!

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