Buying Into Senior Living
Senior housing prices like real estate. It performs like an operating business. That single fact is where most first-time entrants get caught — and this guide follows from it.
Written for private equity firms, REITs, management companies, family offices, and multifamily sponsors evaluating a first senior living acquisition, or a first one in a new market.
- What you’re actually buying — the five things that transfer with the deed and never appear on the rent roll
- Four questions to answer before the LOI: labor model, pricing strategy, ancillary revenue, and owner/operator versus third-party management
- How to read a seller’s motivation, and what deferred maintenance does to a cap rate
- What margin is achievable under your labor model, not the seller’s
In a first acquisition, everyone at the table knows more than you do
The broker is compensated on the transaction closing. The lender is underwriting downside, not upside. The management company you’re considering has a natural interest in being hired. Your own real estate team is excellent at real estate and has never run a building.
What distinguishes our team is that the advisory work rests on operating experience. Our people have run communities — carried the census, the staffing plan, and the survey results — not just reviewed them on paper. It’s why we read three years of reviews before we read the rent roll, and why we treat the first ninety days after closing as part of the acquisition.
Read the guide
Six pages · No cost