A continuing care retirement community (CCRC) is a facility that includes multiple levels of care. That includes Independent Living, Assisted Living, and a small Skilled Nursing component. While the concept of aging in place is appealing, the distressed sales and financial troubles of CCRCs have taken over the headlines.
Based on the difficulties in the housing market, we believe the troubles for CCRC communities is going to continue for the next couple of years. These properties, with an entry fee model, can’t capture residents until they sell their homes. In addition, the communities have a significant amount of debt. The only thing that might save these communities is the low cost of capital and groups with strong balance sheets that can purchase them for cents on the dollar.
If you are interested in acquiring a CCRC, please contact me at Ryan Saul. If you have a community that you have thought about selling, I would be happy to put together a confidential proposal.