Success in Senior Housing and Skilled Nursing Sectors
The population is growing at a faster rate among older ages than younger, making senior housing a very lucrative investment segment.
Potential for attractive yields and unique demographic and financial characteristics has resulted in senior housing real estate becoming a primary real estate asset class, enhancing the valuations of specialty healthcare REITs.
We have typically focused our senior housing efforts on the skilled nursing sector with an eye to the future on assisted living options. An appeal of senior housing investing is its resistance to downturns in economy, unlike economic pressures generally associated with the multi-family sector.
Transition to Regional Investments and Class A and B Quality Assets
In 2004, we established assisted living and skilled nursing real estate holdings with a regional investment focus in the southwest and mid-west, and an operating business in the southwest. By late 2008, we accumulated a senior housing real estate portfolio currently valued at approximately $500 million.
Granite typically focuses on newer, Class A and B quality assets that produce double-digit annual yields on investment. Investment transactions typically range from $10 million to $250 million, with a history of stabilized operations preferred.
An Eye Toward The Future
To date, we have acquired both individual nursing facilities as well as portfolio acquisitions. We are searching for attractive investment opportunities in skilled nursing and assisted living and in other selected regions, based on the company's comprehensive evaluation of market factors, including population, demographics, state reimbursement policies and budget condition, and existing supply (occupancy, condition and age) among other factors.