"Why is distressed/opportunistic senior living investment attractive today? We have unpacked some of the less obvious opportunities.
COVID-19 distress is expanding distressed credit and value-add acquisition deal flow.
Distress was already evident due to supply-demand imbalance. With the addition of COVID-19, seniorcommunities have declining occupancies. This creates liquidity and debt servicing issues for owners.
An attractive credit and/or equity purchase price provides wide margins of safety for investors due tothe low cost.
Senior living distressed credit is an attractive source of return for yield-oriented investors willing totrade lower liquidity for higher absolute yield and performance
Dual utility of attractive risk-adjusted return and enhanced portfolio risk management
Long-term favorable demographic tailwinds
Limited buyers in the short term as asset-level due diligence is restricted due to quarantine and visitationrestrictions. This creates opportunities to buy at lower values."