Investors Target Senior Housing as Population Grays

Forever Young is an assisted living and memory care facility in Tomball.

TOMBALL, TX—Large local and regional care managers and private funds are targeting nursing care centers, which remain a significant portion of seniors housing transaction velocity. Initial yields for skilled nursing properties can extend from the 8% area to above 11 to 12.5%, depending on a number of factors, according to Marcus & Millichap’s most recent senior housing report.

In an example of a recent funding for this type of product, Love Funding recently closed an FHA loan to take out bridge financing for the acquisition of an assisted living and memory care facility in Tomball. Love Funding senior director Leonard A. Lucas of the Boston office obtained the bridge loan from Love Funding’s parent company, Midland States Bank.