In an earlier article we discussed how post-acute care and innovation in senior housing are expected to play big roles in the industry next year. Providers are also expecting opportunities to arise in other areas of senior housing. Those providers that are able to take advantage of opportunities in these areas should be rewarded with positive returns that they can use to expand or invest in other properties. While interest rates remain low, industry participants who are seeking capital to take advantage of these opportunities by acquiring senior housing assets should contact Chicago-based Cambridge Realty Capital to learn more about the different financing options that it offers for a wide variety of senior housing transactions.
One of the main areas that providers are looking forward to focusing on next year is relationship building. In an effort to integrate the healthcare system and achieve the efficiencies that should come with this, Congress and the president have enacted new laws with financial incentives to encourage healthcare providers to work closer together. Some providers are already beginning to do this, and they will be in a strong position to take advantage of these incentives even more in 2015.
For example, Sunrise Senior Living uses its Road Home Program to ease the transition for residents that move to one of its senior housing communities from a rehab center or hospital. According to Chris Winkle, Sunrise’s CEO, the key to success in this area is to “build the right strategies and networks so there is benefit to the medical community, senior living operators, and most importantly, the seniors and families in need of care.”Sunrise believes that it is doing this with its Road Home Program, and other providers are expected follow suit with similar programs next year.
In addition to building new relationships to enhance operations, some providers are also developing new senior housing facilities and habitats to attract seniors in their seventies and eighties who want to leave their homes, but also want to stay in an integrated community. To satisfy this segment of the market, providers are considering partnering with local mixed-use developers to build smaller facilities around larger skilled nursing facilities, hospitals, assisted living facilities, and mixed-use properties to create a small town or habitat with features that cater directly to seniors, such as nicer restaurants and wellness centers. Providers that are involved in building these small senior living enclaves believe they will prove successful because they offer seniors a range of housing options, fun activities, great dining options, and quality medical care. For these reasons, an increasing number of providers are exploring getting more involved in this segment of the market, and the industry could see some sizable activity in this area next year because of this.