Attorney John Ruffier discusses a recent Senior Housing News article suggesting that the middle market may now offer the best opportunities for growth in the industry.
For years, the senior living industry seems to have paid a lot of attention to ever-more-opulent facilities offering amenities akin to a five-star hotel. With those luxurious surroundings come high price tags which are out of reach for many potential residents. Tim Regan of Senior Housing News recently authored an article suggesting that the middle market may now offer the best opportunities for growth in the industry and present an attractive product to potential lenders.
The article notes that, to attract the middle market, “operators must charge a low enough rate that middle-income residents can afford, but one that is high enough to carry the right margins to make it a profitable endeavor for operators and owners alike.” The article goes on to suggest that the path to this middle ground success can be gained by acquiring existing, older communities in need of a refresh. With the impact of COVID-19...[Read more
This article is informational only. You should consult an attorney before acting or failing to act. The law may change rapidly and no warranty is given. LOWNDES DISCLAIMS ALL IMPLIED WARRANTIES AND WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ALL ARTICLES ARE PROVIDED AS IS AND WITH ALL FAULTS. Consult a Lowndes attorney if you wish to establish an attorney/client relationship.