Manhattan, NY.

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NEW YORK CITY- Investorshave stars in their eyes when it comes to seniors andtransit-oriented housing because demand has outpaced supply forboth asset types in core urban markets.

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Moreover, shifting demographic factors such as an aging BabyBoomer population and demand for a live-work-play environment inurban markets are favorable to the seniors and transit-orientedsectors for decades to come, according to panelists at a recentAriel Property Advisors Coffee Cap Rates Breakfast in Midtown.

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The workforce mode of transportation has changed, whereas 50years ago commuters traveled by rail and now the Millennialworkforce is commuting by train. The demand is for live-work-playhousing and easy access to travel about in city-environments withNew York as a prime example of that, said panelist Nadir Settles,managing director and New York regional head of office real estatefor the Americas at Nuveen.

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On the periphery of New York City in tri-state submarkets suchas Montclair, Morristown and Westfield, New Jersey, there has beena push by pro-growth and pro-landlord politicians to havetransit-oriented activity to increase tax pay without stressingschools, according to Tyrone Barnes, vice president of TaconicInvestment Partners.

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"They're going about it in a smart way, and I expect it willcontinue over the next decade," Barnes said.

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Although, some hiccups come along with lending on and developingproperties within the tri-state area, near train lines where thereare heavy regulations and a "not in my backyard" attitude. This hasbeen the experience of Signature Bank in some Long Islandsubmarkets where the firm was pursuing takeout financing forseveral transit-oriented communities, according to Joesph Finnegan,managing director and senior vice president at Signature.

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While transit-oriented properties have been a focus for thethree industry players, seniors housing has become something thateach panelist is considering as the Baby Boomer population agesup.

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Finnegan said the assisted living subset of seniors housing isjumping out all over Long Island, having seen Bristal AssistedLiving, an operator of seniors housing, achieve strong occupancyfor its three to four developments in the market.

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And Nuveen is considering investments into the seniors housingsector because of its all-around favorable characteristics,according to Settles. "I think we're going to get involved withit," he said. "Certainly the fundamentals are there from a broaderhealthcare perspective, and there's plenty of healthcare subsectorsto invest in."

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.