In 1950, 8% of the population was over 65. Today that number is 16.9% and by 2050, it is projected to be 22%. There are currently 25 million Americans over 75 and 9.3 million over 85. With the oldest baby boomers turning 85 in 2031, the numbers look quite impressive.

TYPES OF INVESTMENTS. As an apartment owner with no background in senior housing, where would I find such investments? There are REIT (Real estate investment trusts) where you may be able to passively invest, you could hire a third party operator to turn your existing property or one you would acquire into senior housing or you could even purchase rental properties in a 55+ community.

THIRD PARTY INVESTMENT. Hiring a third party operator to manage your senior housing can be a good idea, but you will still be responsible for their actions, so it is very important to know your new partner very well. The 55+ rentals can be a lot easier, because they are like any rental, but you will have older tenants who are less likely to move and who are generally more settled.

REITS This may be a good way to invest in the senior market. Many REIT’s acquire or in some cases build large senior housing and are set up to manage the properties long term. These can include assisted living, memory care and even nursing homes as well as independent living facilities.

EXCHANGE TO A SENIOR HOUSING REIT? There are companies who set up temporary DST’s (Delaware Statutory Trusts) to allow investors to exchange into the REIT which absorbs the DST. Sounds complicated, but at the end of the day, it could be a solid investment, defer taxes and relieve the investor of management responsibilities.

PROFESSIONAL ADVICE. I always recommend advice from your real estate attorney and your CPA before moving forward with any investment, but especially this one It may be a great move for you as your look to keep your investments, but limit the day to day management duties.

What we at PRS PROPERTIES CAN do for you is to recommend professionals we have worked with and we can talk to you about your particular situation. We can help you decide what changes need to be made, if any, on your existing building should you decide to sell and exchange into senior housing. We can recommend lenders who can help you regardless of credit, should you decide to do some repairs yourself . We can also look at your building for other changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.