PHOENIX—"As an industry, all of our product types are fighting each other." That was according to Stephanie Anderson, principal and co-founder of SilverStone Health Care Real Estate, during a special senior housing presentation at the recent RealShare National Healthcare Real Estate 2015 conference.
"We are starting to segregate the spectrum and accept the fact that each person will have a specific need of services," added Anderson. In general, Anderson loves the independent living and CCRS sector, but says they are generally more expensive to build.
"It is want based," she said. "It really is cost driven."
As for who is in "buy mode" at the moment, Anderson said that right now the REITs can't take advantage of subsidized debt and are really playing on the development side and it is hard for private equity to compete. But on the acquisition side, she said, "there is almost a softness."
Chuck Harry, managing director and director of research at NIC, notes that there are strong investment returns with seniors housing properties… "a steadiness," as he called it. "More and more capital has been allocated to the space."
Harry pointed out that the cap rates on seniors housing have still been above other commercial property types. "Seniors of the future aren't really going to retire, they are going to transition."
For more information related to healthcare real estate and more, check out the latest news we have been covering.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
