Senior Housing Strategies

Growth through Guidance

The surging senior demographic, demand, and favorable market conditions are just a few of the key drivers transforming senior housing into a mainstream asset class, and the fastest growing investment opportunity in today’s real estate market. Ongoing capital investment is needed. Eager to capitalize on compelling demographics and sound market fundamentals; developers, buyers, investors, and lenders are expanding their portfolios to address the robust demand for senior housing.

The Collingwood Group offers objective, independent, and customized guidance to our clients to help shape their senior housing investment decisions, avoid the pitfalls of overly rapid growth, and maximize returns. As former federal funders and regulators, we created and implemented policies and programs to promote fiscally sound FHA-insured senior housing properties. Our team’s core knowledge of senior housing programs and policies provides a unique ability to assess the current financial health and compliance standing of existing properties and/or determine strategies for new developments. The senior housing advisory services and solutions provided by Collingwood are listed below.

Key Services

Strategic Development Planning

The Collingwood Multifamily team provides strategic direction for your senior housing acquisition or development decisions. A third party independent and objective review is critical to making sound investment decisions in today’s senior living landscape. While notable demand factors such as steadily rising penetration rates and a significant increase in new construction starts between 2009-2014 are attractive, carefully monitoring all key metrics is central to achieving and maintaining success in the senior living space.

Collingwood will analyze and assess market fundamentals – measurements of demand (penetration and absorption rates), rent fluctuation patterns, occupancy rate growth, and local market supply. We will also work with you to grow local support, which is key to building reputational strength in any market. Our team will review local land use and zoning policies, and evaluate other potential barriers to entry. Together we’ll develop strategies to encourage cities to approve policies to address the growing housing needs of seniors through private sector development or rehabilitation of senior housing properties. Our real estate professionals provide support to assist with developing a business plan focused on achieving your senior housing performance objectives.

Capital Sourcing & Transaction Guidance

The outlook remains strong in the capital market environment for senior housing investment. There are multiple financing mechanisms available for acquisition, new construction, rehabilitation, and refinancing in the senior housing sector. Collingwood offers outstanding guidance to for-profit and nonprofit senior housing providers to access capital and navigate through complex transaction processes.

The Collingwood team will work with you to access construction debt, permanent financing, acquisition/refinancing, grants, mezzanine debt and other alternative financing sources needed to establish or expand your senior housing portfolio. Our experience as administrators at FHA, tenure with state housing finance agencies, and network in the multifamily finance sector provides us with a vast knowledge of financial products and providers.

We will leverage our institutional knowledge of FHA Section(s) 223(f), 223(a)(7), 221(d)(4), and 202, Low Income Housing Tax Credits, tax-exempt bond financing, and other products to customize a financing structure to meet your goals. Competition for financing is intense and underwriting assumptions are becoming more aggressive. Collingwood will assist with application preparation, pro forma creation, development cost schedules, rent schedules, and other key documents. We will help you establish a development team that is attractive to funders, and provide you with the overall support needed to strengthen your chances of obtaining favorable financing.

Asset Oversight

The Collingwood team has vast experience in asset oversight; having supervised the financial health of 13,000 FHA-insured multifamily properties, and the administration and compliance requirements of operating subsidy contracts for 1.2 million Project-Based Section 8 units. The team recognizes that developers and investors often focus on getting the deal closed, and pay less attention to maintaining or increasing the value of their multifamily asset.

To address this imbalance Collingwood provides clients with analysis and evaluation of operational performance. Our team’s insight and discipline regarding cost containment, improved occupancy levels, and achievable rent schedules, supplements your ability to achieve revenue and NOI growth expectations, increased asset value, and optimal cap rates. We can provide you with a portfolio wide or property specific compliance plan based on financing sources, and establish due diligence strategies to enhance regulatory performance.