As the population of Americans aged 65 and older grows, demand for senior living options is rapidly on the rise. The Baby Boomer generation is aging, and the senior housing and healthcare industries are already feeling the effects. The U.S. Census Bureau projects that the 65 and older population in the United States is expected to grow by 67 percent in the next 25 years – from 48 million today to approximately 80 million in 2040. Currently, the Census Bureau has found that approximately 21 percent of the current 75 and older senior population resides in assisted living or other senior housing facilities. Further justifying the increasing demand for senior housing, the U.S. Department of Health and Human Services estimates that nearly 70 percent of people reaching age 65 will eventually require long-term care in one form or another; and it is expected that this figure will continue to climb.
To meet this growing demand for senior living, Wells Fargo has officially entered the senior housing market with a newly formed specialty business group, Wells Fargo Senior Finance. Technically, Wells Fargo’s Commercial Real Estate Group has already been providing financing services to the senior housing industry. However, the official Senior Finance arm of the company was created at a time when an estimated 20,000 senior housing units per year will be necessary to meet demand over the next 25 plus years.
The Senior Housing Group has already been quite active in 2015, reflecting the rising demand for senior independent and assisted living communities. This past March, it closed several senior real estate finance projects nationwide. Some of the largest include $17.45 million to construct an independent, assisted living and memory care facility in Oregon; a $21.2 million deal to build an assisted living and memory care community in Fort Lauderdale, Florida; a $49.2 million project in Foster, California; as well as a $53.5 million deal for an assisted, independent, and memory care community in Fort Myers, Florida.
Contact Cambridge Realty Capital
Cambridge Realty Capital specializes in providing financing and capital for large-scale improvements to senior living facilities. Cambridge Realty Capital has extensive experience and expertise working with HUD loans, and is considered a leader in this area. We also have expertise in mergers, acquisitions, and joint ventures. For any questions regarding finance and capital for your senior living initiative, contact Cambridge Realty Capital. Our experts are standing by to help you improve your community.