Private equity firms are in a prime position to become the next big investors in the senior living segment of multi-family. According to the National Real Estate Investor, private equity groups are looking for places to put their money to work amid poor economic conditions and a rather lackluster commercial real estate market. Investors are drawn to the market due to the sheer volume of seniors who might need special housing, in addition to current occupancies rising and the lack of new construction under way.
The main concern to an all-in approach for private equity investors on the senior living market is the fact that many of the large portfolios have recently been traded. With a shortage of these deals on the table, investors will look towards individual assets to assemble a portfolio. Many believe the best bet is to look at underserved markets, underperforming properties and creative approaches like buying non-profit assets and converting them to for-profit entities.
To read the full article from the National Real Estate Investor, click here.