RAINMAKER MARKETING CORPORATION 281.537.1200

Home
Syndicated Financing
Financial Business Plans
Money Hunts
Available Grant Financing
Due Diligence Services
Senior Housing Consulting
Market Studies
Quick Site Reviews
Financial Feasibility Studies
Search Engine Optimization
Projects & Clients
 

 

Senior Housing Investment Yields - Terminology Explained...

If you are concerned about potential senior housing investment yields, then perhaps Rainmaker can help you.  Rainmaker is a group of senior housing consultants that can support the development and funding of new facilities or the ongoing acquisition goals of senior housing facility owner/operators, so we have quite a bit of experience in the financing of these properties so we are glad to provide some transaction metrics regarding senior housing investment yields for those who are curious about these matters.

Hereinbelow is a listing of the economic output metrics for a variety of senior housing investment types and their corresponding yields using the equity construction:

Project Type Stabilized EBITDA % of Sales Expected Annual IRR Equity Return - LP Expected Annual IRR Equity Return - GP
Assisted Living 24% to 32% per annum. 16% to 22% per annum. Greater than 100% per annum.
Dementia Care 26% to 38% per annum. 18% to 24% per annum. Greater than 100% per annum.
Independent Living 38% to 45% per annum. 16% to 20% per annum. Greater than 100% per annum.
Congregate Care 24% to 32% per annum. 16% to 20% per annum. Greater than 100% per annum.
CCRC (rental) 34% to 42% per annum. 18% to 24% per annum. Greater than 100% per annum.
CCRC (entry fee) 36% to 44% per annum. 20% to 26% per annum. Greater than 100% per annum.

Today's senior housing market is quite different from the market that existed only ten years ago and Rainmaker is the firm that specializes in supporting owner/operators with the latest information and trends affecting the geographical primary marketing area of their various properties.  If your organization is considering the development or acquisition of senior housing, then it just makes good sense to talk to a senior housing consultant that has experience in your market and your type of housing program.

Do You Know The Secret?

When it comes to commercial real estate development finance, it doesn't matter whether you need to raise $5 million or $50 million, the out-of-pocket costs, advance fees and project due diligence costs will always require the same relative investment dollars the promoters have to fund.  Do you know what that amount is?  Do you know the Secret?

Rainmaker Marketing Corporation can trace its history back all the way to 1989.  Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm.  Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties.  Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services.  Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.

©Copyright 2011, Rainmaker Marketing Corporation, Inc.  All rights reserved.