Senior housing, which was once thought of as a niche property type, has recently become a mainstream commercial real estate asset class. This is due in large part to the post-WWII baby boomer population, some 76.4 million Americans born between the years 1946 to 1964, which will create unprecedented demand for the senior housing options over the next several decades. In addition to demographic trends, the most recent recession showed that senior housing tends to be a resilient asset class not as susceptible to occupancy fluctuations as seen in other asset classes. As commercial real estate investors have taken notice of this industry, the National Investment Center for the Seniors Housing and Care Industry estimate this market is valued at over $250 billion. Large-scale operators of senior living communities throughout the United States have rapidly acquired smaller, less sophisticated operators and the industry has seen mass consolidation as evidenced by the $2.8 billion Brookdale and Emeritus merger. However, there are still opportunities for operators to partner with non-bank funding sources to acquire and develop properties, redevelop, or conduct value-add projects when they are unable to secure conventional financing. Bloomfield Capital is a strategic capital partner that finances senior living facility acquisitions, recapitalizations, redevelopment, and other uses through bridge loans and equity participations with a focus on opportunistic and value-add opportunities nationwide.
Why Senior Living and Bloomfield Capital?
Today’s seniors often prefer life in senior housing communities as opposed to living at home alone. Not only do senior living communities offer high-end, resort style amenities such as restaurant-style dining, entertainment rooms, fitness and therapy rooms, and salons, but they also take away the burdensome homemaker tasks like cooking and cleaning. As senior living operators look to acquire communities they often have trouble securing debt and equity, especially for ground-up developments. Bloomfield Capital acts as a partner in these scenarios by providing bridge loans or equity participations until the asset is stabilized and conventional financing can be secured. Bloomfield Capital serves as not just a strategic capital partner, but as a resource, leveraging its existing senior living relationships to provide additional market research, demand studies, and other underwriting materials to help mitigate acquisition and development risk.
What Qualities Make a Senior Housing Investment Attractive?
