With providers of senior housing looking for ways to maximize their investments, a new trend that is emerging in many parts of the U.S. is investors, developers, builders, and housing management companies seeking to create small-scale home like communities that maintain a high return on investment (ROI). The purpose for doing so is largely the product of an increased demand, especially among seniors for cozy, smaller, more manageable spaces that are functional, practical, and cost-effective. In other words, seniors today are less concerned with large spaces and more concerned with quality of life, functionality, and the ability to get the most effective and useful bang for their buck.
A company based in Texas called Uncommon Care focuses on marketing and catering to seniors using the motto that “Less is More.” For Uncommon Care, design, layout, and actual floor-plans mimic this approach. Seniors are exposed to more common and shared areas and are provided access to smaller yet highly functional spaces, where vaulted ceilings, open airways, and ceiling and sun windows allow the company to make smaller confined spaces feel relaxed and open despite the smaller square footage.
This “less is more” approach by companies such as Uncommon Care has significantly impacted the availability of Senior Housing units in the area, where because of the affordability and the overall demand for smaller-scale community homes, builders have not been able to adequately keep up with demand. In terms of investment return, companies such as Uncommon Care are reporting “a 31% return on investment for Bader House and remains on target to fill two beds there every month.” Such a model for investment of return is being replicated by other groups as well, including SeniorCare Homes, based in Kansas, that is focused on building “home plus” facilities, or using existing homes that have been converted into memory care facilities for 12 or fewer individuals. In other words, similar to Uncommon Care, SeniorCare Homes is seeking to obtain a high ROI based on the premise that “less is more.”
Senior Housing providers are at a pivotal moment in time, where there are many providers taking economic advantage of the trends among senior residents and seeking housing and care facilities on the basis that “lesis is more.” Cambridge Realty Capital is versed in a variety of investments in the senior housing market. Our experience and expertise make us a leader in the investment world.
