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January 2014

First Quarter Market Newsletter

Advanced Commercial Credit International (ACI) Limited

Senior Living Market Remains Strong Into 2014

Assisted Living Expected to Continue Its Senior Housing Reign in 2014
Assisted living is expected to continue its domination of the senior housing investment and acquisition scene in 2014 following a year where the sector grabbed industry headlines for new construction volume and low cap rates. investor interest expected to revolve more around senior living than skilled nursing. People are going to be a lot more comfortable with the lower acuity of independent living and assisted living, Eikanas says. As you go up the acuity scale, the amount of investors gets less and less.

ACI is a group of experienced Commercial Real Estate & Private Equity Investment Bankers that are waiting to provide you with the capital intermediary knowledge and assistance you need to obtain the best financing and equity options available in the market today.

For new development and newer, Class A product, assisted living and memory care are probably going to be the most attractive and easiest for us to sell. Everyone wants them, says Jeremy Buyers are keeping an eye on the Stroiman, CEO of brokerage firm Evans expected rise in interest rates, wideSenior Investments. spread capital availability, and overall positive direction of the econNext year will probably look a lot like omy, he says. 2013, says Kent Eikanas, President and Chief Operating Officer of Summit Source: Alyssa Gerace, Senior Housing News Healthcare REIT, Inc. (formerly Cornerstone Core Properties REIT), with

New Market Players Flock to Texas Senior Housing Boom

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With construction reemerging in the senior housing sector and development taking off in particular among assisted living and memory care communities, one area that experiencing a higher rate of development is Texas. The states demographics with highly populated metros including Dallas, Houston and San Antonio, have led operators, including new entrants, to seek opportunities within the Lone Star State. Occupancy levels are holding steady at 86% across the southwest region, compared to a national average of 89%, according to the latest data from the National Investment Center for the Seniors Housing and Care Industry. Rent growth, however, is outpacing the national aggregate at 1.8% as marked in the third quarter, three basis points above the national average 1.5%. Yet construction levels are high versus the national average. Particularly in assisted living development, new construction far outweighs inventory, with 1072 assisted living units under construction in the Houston area, or 19.2% construction versus inventory; and 28% construction versus inventory in Austin with 528 units being constructed. Those figures compare with the national average 5.2%.

Source: Elizabeth Ecker, Senior Housing News