The senior housing industry has remained strong this year thanks to low interest rates, an improving economy, and favorable demographics that continue to fuel demand for senior housing services and assets. Indeed, occupancy rates and rents are up across various properties, reflecting the growth and health of the industry, and providers and investors are continuing to make acquisitions in the space in order to take advantage of the sector’s strong dynamics. Acquisition strategies often differ amongst investors depending on their goals, target returns, and available capital. Some investors prefer to acquire large senior housing operations in heavily populated areas, while others often target small “mom and pop” type communities in less densely populated areas. Still others have begun to take a look at middle-market opportunities to see if there are opportunities to be had there. Recent senior housing acquisitions in Florida demonstrate some of these strategies and also continue to provide evidence of the attractiveness of senior housing assets.
In Florida, the senior housing and medical office real estate company ROC Seniors Housing Fund Manager has acquired Maristone Senior Living and tapped the Iowa-based company Life Care Services to operate these properties. ROC Seniors Housing Fund is a subsidiary of the real estate investment company Bridge Investment Group Partners, and this acquisition adds multiple facilities to its portfolio as it includes both Maristone of Franklin and Maristone of Providence. Maristone is a family owned company and decided to sell these assets in order to focus on other endeavors that it’s involved in. Maristone’s management was happy to be able to find a strong buyer for these communities as evidenced by its CEO’s statement that“[We] are glad that a company with ROC Senior’s reputation will continue to provide for our residents with exceptional service and care.”
Also in Florida, Greystone Healthcare Management Corporation, which manages healthcare facilities and home health agencies in Florida and Ohio, recently announced its purchase of Wuesthoff Progressive Care Center, which is being renamed Viera Health and Rehabilitation Center. The Center has 114 beds and is a skilled nursing facility that provides short and long-term care and rehabilitation services. It includes private and semi-private suites and offers a number of activities and events that Greystone believes will enhance the stay of its residents and their quality of care. Connie Bessler, Greystone’s CEO, demonstrated the company’s excitement about this purchase by stating that “With this acquisition we are solidifying our relationship with the Wuesthoff Hospital System and strengthening Greystone’s position in the greater Brevard County Market, complementing our Rockledge community and enhancing our health network.”
Analysts expect the senior housing industry to remain robust for some time because of the nation’s changing demographics and the improving economy. Accordingly, senior housing providers and investors that are interested in strengthening their portfolios by acquiring senior housing assets should continue to look to the Chicago-basedfinancing firm Cambridge Realty Capital for assistance in funding these transactions.
