SNFs, Senior Housing could become Investor Favorites

An uptake in activity could be on the horizon for the skilled nursing and seniors housing market after the sectors enjoyed positive signs of recovery during the third quarter, according to an investment firm.

“The near-term future is opaque with the pandemic still creating uncertainty; however, seniors housing and skilled nursing facilities remain a key piece of the care spectrum, and the current environment may present unique favorable circumstances for investors,” wrote authors of a new report issued by Marcus & Millichap.

The analysis notes that average rents are up by more than 1% in all four levels of care across the seniors housing sector. Skilled nursing occupancy entered November at 76.2% and has steadily increased by 250 basis points over the last two quarters.

The recent success presents a “window of opportunity” for investors following the signs of recovery, move-ins rising and increasing vaccinations across the industries. Additionally, population trends indicate that “robust demand” is on the horizon.

“Many investors that moved to the sidelines during the pandemic have cash built up and are reentering the marketplace. Sales volume has already matched the 2020 total through the first three quarters of 2021, and momentum will likely continue in the coming months,” research analysis Benjamin Kunde wrote.

“Stimulus funds, which were especially generous in the skilled nursing segment, are starting to dry up, possibly persuading more owners to list their properties. Additionally, the cost of capital remains low, and potential interest rate hikes and tax changes on the horizon could drive sales activity in the near term,” he added.

However, labor shortages being experienced by both sectors could keep investors cautious about any deals, he warned.

“Many operators are utilizing higher compensation to attract staff, which is costly at a time when insurance fees have increased and infrastructure improvements are needed for virus containment. Furthermore, some operators are allocating funds to ramp up marketing efforts, as many facilities are trying to fill rooms at the same time,” Kunde wrote. “Endeavors to entice prospective residents are especially important in the near term, as move-ins should accelerate once a broader return to workplaces reduces the number of people able to provide at-home care.”

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

What are you looking for?

SNFs, Senior Housing could become Investor Favorites

Fill up this form to download the file