Over the next 10 years, the baby boom generation will start
to reach retirement age. As a result, the demand for senior
housing will increase significantly. Since 2008, the senior
housing market has suffered from a lack of liquidity in the
capital markets. Subsequently, capitalization rates are higher
than other asset classes, making the cost of acquisition of
senior housing properties remains relatively low.
Many independent operators have been unable to sell their
properties due to the illiquidity in the market. Sterling will
acquire targeted properties based on “in place” revenues
which, at current cap rates, result in acquisition prices
significantly below replacement cost. Sterling seeks “off
market” acquisition opportunities for properties in strong
markets. We look for curable challenges resulting from
existing management issues, operational inefficiencies or
financial challenges due to existing ownership’s capital
structure.
The Sterling team has a track record of taking under
performing properties and turning them around, creating
success stories and high performing assets. The combination
of favorable demographics and an illiquid market make this a
great time to acquire senior housing properties.
to reach retirement age. As a result, the demand for senior
housing will increase significantly. Since 2008, the senior
housing market has suffered from a lack of liquidity in the
capital markets. Subsequently, capitalization rates are higher
than other asset classes, making the cost of acquisition of
senior housing properties remains relatively low.
Many independent operators have been unable to sell their
properties due to the illiquidity in the market. Sterling will
acquire targeted properties based on “in place” revenues
which, at current cap rates, result in acquisition prices
significantly below replacement cost. Sterling seeks “off
market” acquisition opportunities for properties in strong
markets. We look for curable challenges resulting from
existing management issues, operational inefficiencies or
financial challenges due to existing ownership’s capital
structure.
The Sterling team has a track record of taking under
performing properties and turning them around, creating
success stories and high performing assets. The combination
of favorable demographics and an illiquid market make this a
great time to acquire senior housing properties.
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