Repurposing existing structures may be one solution for coming senior housing crunch

Repurposing existing structures into senior housing might alleviate some of the uptick in need for housing and care as the oldest baby boomers, turning 76 this year, look for senior housing in the coming years. That’s according to the New York-based Ritz Herald.

With cost inflation and supply chain issues affecting new construction, investors are looking for the best return on their investment. Oftentimes, repurposing existing structures is cheaper and faster than ground-up development, according to Bisnow.

“Sometimes you can save money by doing repurposing, but what you really save is schedule, and schedule, you know, equates to cost savings,” Meridian Chief Development Officer Mike Conn told Bisnow.

Repurposing existing structures for a new use as senior housing has been trending in parts of the country since the pandemic, McKnight’s previously reported. In Chicago last year, several senior housing firms began adaptive reuse projects to preserve existing, sometimes historic, buildings and, thus, improve the neighborhood while offering new options for senior living.

“Whereas ground-up development requires infrastructure to be established and walls to be erected, a conversion project gives investors the opportunity to improve upon what is already existing. Instead of building an entirely new property, investors can renovate an existing one and have it up and running in a shorter time,”the Ritz Herald noted.

The hotel industry was hit hard by the COVID-19 pandemic, and some investors, even in Europe, are looking at repurposing once thriving hotels into senior living resorts, the Ritz Herald said.

“Although many hotels have started to rebound and the hotel industry as a whole is on an upward trend, these challenging hurdles have highlighted that some hotel properties may not be the highest and best use for their location,” according to the Ritz Herald. “These properties, though they may no longer be viable options for hotel investment, offer an interesting opportunity for senior housing.”

Repurposing existing hotels makes sense, according to the media outlet, because they typically have offered similar amenities and accessibilities that senior housing developers are looking for. Most have kitchens capable of facilitating cooking for large groups all at once as well as shared common areas that can be used for group activities. The properties often are centrally located with access to main roads.

Challenges exist to repurposing existing structures, however, the Ritz Herald noted. For example, while modifying the inside, construction crews might find structural damage or other unforeseen obstacles. Additionally, it might be necessary to change the existing zoning code where the property is located. There is always the risk that the request could be denied.

“While not every property will be an option and not every investor will wish to tackle such a project, transforming hotels into senior living is a viable strategy,” the Ritz Herald concluded.


Our Mission & Vision

Haven Senior Investments’ vision is to serve those who care for senior citizens and others in need of safe and nurturing housing.

Our mission is to serve the owners, operators, buyers, sellers, developers, and investors in the seniors housing and assisted living industry by offering a range of services to help them maximize their objectives and investment returns.

Our purpose is to glorify God by building profitable and sustainable businesses that advance His Kingdom and His children.

The Haven team brings a unique combination of finance, real estate, business development, operations, and healthcare experience to serve our varied senior housing clients. We operate on a team approach, which allows our clients to benefit from the experience and expertise of the whole Haven team. Our efforts are focused on the areas of independent living, assisted living, active adult, and communities that specialize in Alzheimer’s and memory care.

Related Posts

These were the fastest-growing cities in 2022, Census data shows

(NEXSTAR) – While the housing market is cooling, some Americans are still on the move. That seems to be especially true for cities in the south, nine of which were among the 15 fastest-growing cities last year, according to newly-released U.S. Census Bureau data.  Texas overwhelmingly dominated the list, claiming six of the top spots, per the

Why Active Adult Is Piquing the Interest of Investors

BY THE CITIZEN ON MAY 10, 2023 DALLAS — Investors are drawn to the fledgling active adult segment for several reasons, according to Caroline Clapp, senior principal, research and analytics, for the National Investment Center for Seniors Housing & Care (NIC). For starters, it’s a new property type and emerging market that is relatively easy

Five Biblical Principles for Sales and Marketing

Five Biblical Principles for Sales and Marketing Part 1 of 7 Nehemiah felt like pulling his hair out. There they were, set up outside the city wall. Not long before, Nehemiah had confronted the Jews about doing business on the Sabbath. They had been treading grapes, loading up their donkeys with grain, and bringing their

the tailwinds of e-commerce demand for warehouse space, industrial returns came in highest among the property types, at 13.64%.

Senior Housing Investment Returns Beat Every Property Type Except Industrial

Senior Housing Investment Returns Beat Every Property Type Except Industrial Senior housing continues to pay off for investors, with only industrial real estate producing higher annualized returns for the period ending Sept. 30, 2019. That’s according to data compiled by the National Council of Real Estate Fiduciaries (NCREIF), recently shared in a blog by Beth

Scroll to Top

Repurposing existing structures may be one solution for coming senior housing crunch

Fill up this form to download the file