If you’re gearing up to test the investment waters for senior housing/healthcare real estate, you may want to consider this advice from real estate investment maven Gerald Nudo: “Work with someone you trust who has a proven record of achievement in this area.”
Mr. Nudo is a partner in Marc Realty, a full-service commercial real estate company that owns, manages and leases some of the best located office buildings in the Chicago metropolitan area. The company leases and manages a portfolio of more than 40 office properties, primarily in Chicago and its suburbs, and also owns residential apartment buildings, retail properties and several health clubs.
Mr. Nudo believes the senior housing/healthcare industry has a very promising future. But he says he would be “uncomfortable” making investments in this area without the involvement of an experienced investment partner.
“The senior housing industry is management-intensive. Investors are wise to align themselves with competent, experienced real estate pros that have a solid history of success in the industry,” he said.
Over the past 15 years Mr. Nudo has partnered with Cambridge Realty Capital Companies Chairman Jeffrey Davis on acquisitions in Chicago, Wisconsin, Indiana, Tennessee and Texas. The acquisitions all were troubled turnaround properties that Cambridge purchased through its Cambridge Investment and Finance Co. subsidiary with the idea of nursing them back to financial health.
“Jeff is a very talented and hard-working guy. There are always issues with the properties we purchase, but he finds a way to make things work,” Mr. Nudo said.
In one example, the owner of a skilled nursing home property acquired by Cambridge filed for bankruptcy and lost its license to operate in the state. Losing a state license can be especially unnerving, as the consequences invariably involve emptying the property and effectively starting over with a clean slate.
“Jeff and his team at Cambridge dug in, hired some people and worked hard to get the license reinstated. Major renovations to the skilled nursing facility were made before reopening in the community.
“In the end we were able to market and sell the property at a nice profit,” he said.
Since he started investing in senior care properties with Cambridge 15 years ago, Mr. Nudo says the investment partners have enjoyed considerable success, with an average annual return on investments of more than 50 percent.
“What’s unique about Cambridge is that the company is exclusively focused on the senior housing/healthcare industry, with a proven track for success as one of the nation’s leading senior housing/healthcare lenders,” he said.
“The Cambridge staff stays on top of things and is easy to work with. There are issues with every deal, but Cambridge finds ways to put whatever is broken back together,” he added.