The amount of demand to purchase good quality seniors housing facilities far exceeds the available supply of readily interested sellers. This factor    compounded with very few new development projects actively moving forward, due to lack of financing; and improving seniors housing fundamentals, has created what should remain for an extended period of time a seller’s market for seniors housing. This is counterintuitive to real fundamentals in general across all other sectors. However, the reality is need based seniors housing is more recession proof than any other real estate sector and prudent investors are acutely aware of this factor; along with the highly appreciated fact by all of us that our population is rapidly aging.  Therefore, this is and will continue to be a good time to position you property to sell.

If the property is underperforming Tranquilium works with operators nationwide and can provide consulting services through relationships with a variety of proven industry professionals which can help to optimize operating performance, and improve census, providing the advise, action plan and implementation needed in order to improve the properties bottom line, increase earnings before interest, taxes, depreciation and amortization (EBITDA) and justify a lower cap rate sale due to the improved historical performance of the property.

After a free consultation Tranquilium can identify the best operator consultant to work with for your property type and in your region. Even if your intent is to sell in a year or more the advice and operation plan will benefit your ability to improve current earnings and optimize the value of the seniors housing asset(s). Improved performance now will reflect as proven historical performance at a future sale date. In this new economic climate, underwriting on past performance instead of future anticipated earnings will remain the key underwriting criteria of prudent institution buyers. Properties that will claim the lowest capitalization rates will be properties that have strong historical performance.   The operating consulting services will help generate a higher EBITDA over an extended period of time, justifying a lower cap rate and the optimal market sale price at the time you are ready to sell.  Please contact Ryan Housekeeper, of Tranquilium at (734) 929-2250 to discuss the next steps to increasing the value of your asset(s).