Firms capitalize on tri-state’s lack of assisted-living communities

TRD New York /
May.May 09, 2011 11:10 AM

Not only does the New York-metro area have the second-fewest available assisted-living units in the country, but the number of units have grown at a glacial 3 percent rate, far below the national average of 7.4 percent, according to a National Investment Center for the Seniors Housing & Care Industry report cited by the Wall Street Journal. As a result, some of the companies that have invested in assisted-living in the region are experiencing large returns. For example, Maplewood Communities bought a failed nursing home in Danbury, Conn. for $11.5 million in 2004, converted into an assisted-living community with rents between $4,700 and $4,900 per month, and now earns $1.5 million in annual income, bringing the development’s estimated value to $18 million, according to company head Greg Smith. Since that purchase, Smith has built two other communities and has 225 more units under development in the region. He said his company hopes to develop 15 to 25 assisted-living communities when all is said and done. Other large owners of local assisted-living communities include Benchmark Senior Living, which owns 15 Connecticut facilities and is expanding into New York, New Jersey and New England. Meanwhile, the Journal noted that the biggest real estate mergers in the country this year, including Venta’s $5.8 billion acquisition of Nationwide Health Properties in February, involved health-care landlords looking to expand their nationwide senior housing portfolio. [WSJ]

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

220 Central Park South and Richard Leibovitch, co-founder of Arel Capital (Credit: Arel Capital)

Richard Leibovitch wants $10M more for the 220 Central Park South home he bought a year ago

From left: 1578 Union Street in Brooklyn, Daniel Melamed (inset) and Eric Schneiderman (Credit: Google Maps, Getty Images, Facebook)

Overzealous investigators went too far in pursuit of Brooklyn landlord, appellate court rules

The U.S. is short 3.8 million new homes

US is short nearly 4M new homes: report

Governor Andrew Cuomo outlines strategies for the 2021 New York Budget (Credit: Flickr)

Cuomo spares real estate in plan to close $6B budget gap

Meryl Streep and 92 Laight Street (Credit: Getty Images and Google Maps)

Meryl Streep parts with Tribeca PH for $15.8M