Cambridge Realty Capital has created a video series entitled “Message From the Founders,” in which we answer common questions relating to senior housing finance. The most recent installment features Cambridge Realty Capital’s founder and CEO Jeffrey A. Davis discussing the current state of memory care in this country. This is an extremely important topic, as demand for memory care in senior housing is rapidly on the rise. Alzheimer’s and dementia patients require a specialized type of care that is not readily available in all assisted living communities. Many senior housing operators are exploring the idea of (or already planning to) opening dedicated memory care wings in their communities or converting existing wings to address the demand for memory care.
In his message, Jeffrey A. Davis explains the appeal of memory care environments to the consumer. He says that families like the idea of a dedicated memory care environment because those facilities often have better dedicated care for their loved ones. In the past, different assisted living environments did not always take proper care of the residents requiring care for Alzheimer’s or dementia. This has triggered the proliferation of dedicated memory care units in senior housing, as senior housing operators adjust to the different care required by today’s aging population.
Are Cambridge Clients Looking to Convert Existing Assisted Living Units Into Memory Care?
As previously mentioned, the demand for memory care in assisted living facilities is strong. Because of this, the economics are quite compelling to senior living operators, lately more compelling than traditional existed living. Unit conversion is a great way to address this demand without having to develop an entirely new community. As long as the market indicates that there is plenty of opportunity available in the memory care market, senior living operators will look to satisfy the demand, whether through conversion or opening new dedicated facilities. What a particular senior living operator will do to enter the memory care market certainly depends on the budget allocated for memory care in each unique community. Memory care units tend to have shorter stays, so the market is a bit more volatile than traditional assisted living. The memory care units that Cambridge has acquired thus far have performed extremely well.
HUD loans may be an option for financing adding memory care to your senior living community. Memory care units are financed as part of the 232 loan program. Cambridge is consistently ranked as a leading HUD lender, and we would love to discuss whether a HUD loan is right for your community. Cambridge also offers a wide array of lending options, including permanent construction and interim loans on either a floating or variable rate basis. We specialize in acquisitions, joint ventures, sale/leasebacks, conventional and mezzanine debt financing, and the acquisition of distressed debt. For any questions regarding finance and capital for your Senior Living initiative,contact the experts at Cambridge Realty Capital.