By Pam McDonald
Shep Roylance, Senior Vice President of JCH Consulting Group, a full-service real estate brokerage company and Senior Housing Forum partner, believes there are some acquisition opportunities in the assisted living market, but sees a threat posed by new development.
He notes, “There are a lot of older buildings in secondary and tertiary markets that the big REITS haven’t gobbled up [like they have] in the primary markets. There are some single assets – maybe 1s and 2s – that are out there right now that are perfect for acquisition. They’re usually distressed assets, probably 20-30 years old, they need rehab, and they need a memory care unit to serve that area.”
He adds that he likes what he sees Mainstreet Health Investments (a Senior Housing Forum partner) doing. (They specialize in transitional care and building as well as investing in new development.) He states, “It’s going to be interesting to see how it plays out throughout the nation, that they’re looking to enter a number of different markets, including California.”
However, Shep also points out, “I actually see some of the new development as a threat. I think that we need new beds coming online but I probably receive 2 to 4 calls a week from some guy that owns some land in some random location that thinks it would be perfect for an assisted living facility or a skilled nursing facility . . . [even if] they don’t know what either one of those are.
He continues, “Without a market study . . . [or] any operator advice, I think a lot of those beds and development sites are going to be doomed to fail. They are going to build these sites, they’re not going to have an operator, they’re not going to have input, and you’re not going to have the right design. I see that a lot.
“They don’t use senior housing architects; they don’t use input from an operator for the design of the building. So what are you going to have? You’re going to have this terrible building with a terrible floor plan,” he concluded.
To watch the video, please click the link below:|
To learn more about the changing face of senior housing or SNFs, please contact Shep at (805) 633-4649 or visit his website to see current featured listings by clicking on the button below: