Insider Newsletter

May 23, 2024

Avenida Partners’ Active Adult Rental Communities Achieve Retention Rate of 80-85% with Strong Rent Growth

Avenida Partners’ active adult rental strategy is focused on understanding the prospective resident, differentiating active adult from senior housing and traditional multifamily housing, and providing excellent hospitality. Learn strategies that Avenida Partners employs to develop vibrant active adult communities with high retention rates and robust rent growth, here.

NIC Lending Trends Report Shows Reduced Lending Activity in 4Q 2023

In 2023, the senior housing and nursing care sectors experienced a slowdown in lending activity. The Fed’s decision to hold the federal funds rate steady contributed to a cautious lending environment, with lenders and borrowers adjusting to changing capital market conditions and higher-for-longer interest rates. In the senior housing sector, new construction loan closings remained subdued, while total loan balances and delinquency rates experienced declines. Nursing care construction and loan balances remained unchanged, with a notable increase in delinquency rates in the fourth quarter of 2023. Learn more here

NIC INSIGHTer: Active Adult Growth

 “What do you think is currently the biggest barrier to Active Adult growth, if any?” 

“Currently the biggest challenge is the capital markets coupled with Active Adult being a newer product type. With very limited dollars (both equity and debt) available for construction right now, investors are highly selective and sometimes less likely to enter into a product type they aren’t experienced in.”

Sarah Anderson
Senior Managing Director, Newmark


 

 

 

“The biggest barrier to Active Adult growth is developer and operator’s ability to deliver a differentiated product that is easily understood and valued by our customers/residents.”

Ben Burke
Managing Partner, Headwaters Group


 

 

 

“I can answer your question in one word…capital! While progress has been made with lenders and equity investors, there is still a limited number of capital providers that understand or have experience in active adult – primarily because there isn’t much supply yet.”

Jeff Patterson

Co-Founder & CEO, Sparrow Partners

 

 

 

 

If you have a suggested question for future NIC INSIGHTers, we want to hear from you!

Jim Lydiard, Chief Strategy Officer, Pine Park Health, Sets the Stage as NIC Partnering for Health Committee Chair

“We have entered unprecedented times in the convergence of healthcare and housing. I am continually surprised how industry quasi-competitors come together in unity, advancement, and common spirit.”

NIC’s Strategic Plan includes objectives to ‘expand the tent’ across five key focus areas – Active Adult, AgeTech, Capital for Operations, Middle Market, and Partnering for Health. Focus Area Committees (FACs) were formed to support these efforts. Learn about the Partnering for Health Committee, led by Chair Jim Lydiard of Pine Park Health, and Jim’s vision for this important group of NIC volunteers here.

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