twitter youtube

Senior Managing Director | The Opes Group LLC

Oft-Neglected Senior Housing

I usually write about little known financing tools on this blog but today I’m going to write about an investment opportunity.  Senior Housing has performed incredibly well as an asset class over the last few years and yet I’m not sure it gets enough coverage in the media. The chart below shows senior housing providing the best returns in the commercial real estate sector in the ten years leading up to 2013 – and this includes the 2008 post-Lehman recessionary period!

Alexi Harding, Finance, ChartNow, I know you expect me to provide a dissertation on why the sector has performed so well but I will surprise you yet again. My only point on returns will be that people age regardless of whatever else is going on in the economy. Thus, the product benefits from a certain inelasticity of demand and is a great option for those seeking uncorrelated returns. We shouldn’t, however, take this demand for granted….you never know what may change in the future. If you recall the Star Trek TNG episode “Half a Life” certain species such as the Kaelon don’t believe in senior housing….they avoid old age entirely! While I do see certain positives to this…..the knowledge that one will not live past 60 years old can certainly be a motivator to live expeditiously…..I will not debate that here.

Instead, I will do what we at The Opes Group do best…..I will clue you in to something new.  Sure, you may be aware that you can invest in senior housing but were you also aware that there is a movement afoot to change the senior housing landscape and to offer a more bespoke product? It is believed that at least 98% of senior housing is sterile and institutionalized. If you don’t do something about that now then that is the very product that awaits you in a few years. Can you do something about it and make money at the same time?  Those of you brave enough to take the red pill, click the link below and then contact me to find out more.