🏥
Senior Housing
Independent living to long-term care: acuity levels, licensing, going-concern valuation, and demographic tailwinds.
Property Types
- Independent living (IL): age-restricted, minimal services
- Assisted living (AL): personal care, medication management
- Memory care (MC): secured, dementia-specific programming
- Long-term care (LTC): licensed, government-regulated beds
- Continuing care retirement community (CCRC / Life Plan)
- Retirement residence (private-pay, hospitality model)
Physical Attributes
- Suite / bed count and acuity mix across care levels
- Common area programming: dining room, activity rooms, therapy gym, outdoor courtyard
- Nurse call systems, wander-guard technology, and secured wing design
- HVAC with enhanced air filtration and infection control standards
- Accessibility compliance: suite dimensions, door widths, grab bars, elevator sizing
Value-Add
- Acuity level conversion: transitioning beds from IL to AL or MC for higher revenue per unit
- Memory care wing addition: purpose-built secured unit to capture high-demand segment
- Dining and amenity refresh to support private-pay rate increases
- Operator repositioning: replacing underperforming operator with specialized platform
- Bed count expansion through addition or redevelopment of under-built site
Appraisal Approach
- Going-concern value: separate real property, FF&E, and business enterprise components
- Income approach on stabilized NOI net of management fees and replacement reserves
- Government-regulated LTC beds valued on licence scarcity and per-bed precedents
- CUSPAP and USPAP specialized property standards for healthcare going concerns
Management
- Licensed care operator required: clinical staff ratios, care plans, regulatory audits
- Government funding model: provincial LTC subsidies vs private-pay rate structures
- Food services, housekeeping, recreational programming, and family communications
- Occupancy management: waitlist administration and referral source development
Strategic Concepts
- Demographic tailwind: baby boomer cohort entering care-need ages through 2040s
- Supply-demand imbalance in LTC: government licensing creates significant barriers to entry
- Private-pay vs government-funded revenue mix and its impact on cap rate and volatility
- Operator selection as the primary underwriting risk; management drives NOI
- Sale-leaseback and triple-net lease structures for operator-owned portfolios