Opportunities in the Senior
Housing Market

SHA Capital Partners takes advantage of favorable economic/demographic conditions and has a strong management team with relevant experience.

 

Favorable Demographic Trends: The 80+ age group (those most likely to demand senior housing) is expected to grow at a 2.3% compound annual rate in the next 15 years, nearly five times faster than the key apartment renter cohort (25-34 year-olds). We calculate that the industry will need $50 billion of development capital in the next ten years to simply maintain today’s level of penetration.

 

Strong Current Income Returns: Generally, existing senior housing communities in the marketplace generate initial yields before leverage of 7.0%‐9.0%, about 250‐450 basis points above yields on apartments and other property types.

 

Income Growth Expected: Senior housing was the only commercial property sector that generated rent growth during the global financial crisis. The care component of senior housing makes senior housing demand more inelastic and rent growth more likely.

 

Availability of Attractive Debt Financing: Low‐cost mortgage debt has given senior housing investors the opportunity to generate cash‐on‐cash equity returns in excess of 10% on stabilized assets.

 

Potential for Attractive Total Returns: The senior housing market is experiencing strong going‐in yields, income growth and positive leverage to generate favorable total returns. Senior housing investments produced total returns in excess of those of other commercial real estate property types during the 1‐, 5‐ and 7‐year periods ended June 30, 2013.[1]

 

Risk Mitigation: SHA Capital Partners’ analytical approach, honed over many years in an institutional real estate investment environment, selects properties with the best long‐term potential.

 

Strong Team: SHA Capital Partners combines the discipline and process‐based approach of an institutional real estate expert with deep senior housing industry expertise to generate attractive returns.

[1] National Council of Real Estate Investment Fiduciaries (NCREIF). Please refer to NCREIF.org for more information.

 

Important notice: This is not an offer to sell or a solicitation to buy.

The Confidential Private Placement Memorandum for each investment opportunity contains more complete information, including a full explanation of all the risks associated with investing. Please read it carefully before investing. 

“Senior housing is an attractive real estate segment and SHA Capital Partners is uniquely qualified to help you participate in the opportunity right now.”