Investment in healthcare real estate continues to grow, and it is currently being driven by interest in senior living communities. According to brokerage firm Marcus & Millichap, investors are attracted by boosts in senior housing occupancy, transaction volumes, and returns.
Willy Walker of real estate financing company Walker & Dunlop commented: “If you look at the volumes Fannie and Freddie did in the first quarter, the multifamily market is exceedingly active. There’s a good stock of existing senior housing that consistently needs to be refinanced…[and] the demographics are driving a lot of new construction.”
Source: Institutional Investor. Aging Demographics Lure Investors into Senior Housing
Wells Fargo announced the creation of a Senior Housing Finance group to provide financial services for senior housing developers, investors, and operators. The group will work along with the company's multifamily and healthcare corporate banking units to help the senior living industry meet the growing demand for senior housing units.
Source: Wells Fargo. Wells Fargo Expands Senior Housing Focus to Address Growing Demand
The Assisted Living Federation of America (ALFA) announced earlier this month that it would create an independent credentialing organization for the senior living industry. ALFA President and CEO James Balda told Long-Term Living that the initial focus will be on qualifications for community executive directors, followed by memory care and sales and marketing. He expects the first tests to be available next year.
Source: Long-Term Living. ALFA Announces Credentialing Body
Omnicare, the nation’s largest pharmacy provider for nursing homes, may be up for sale, according to a BloombergBusiness report. The healthcare and senior living industries are in the midst of a boom in merger and acquisition activity, a trend that is expected to continue. Omnicare’s estimated value is $8.2 billion.
Source: BloombergBusiness. Omnicare Exploring Sale of Nursing Home Drug Supplier
Earlier this month, the National Institute of Aging rolled out an online portal that offers tools and training for professionals working with Alzheimer’s patients. The site’s resources include clinical trial information, diagnostic tools, patient care tips, caregiver information, and more.