Seniors Housing Weekly Update -- CCRCs Aren't Going Away
June 11, 2013
CCRCs Aren't Going Away
Late last month, we hosted a webinar on buying selling and valuing CCRCs. For a sector that many people have been writing off, it was a very popular topic with more than 150 people tuning in. Our panelists collectively had more than 80 years of experience in the CCRC business, having built, bought, sold and appraised many, many CCRCs. While there was some admitted prejudice in favor of CCRCs from this group, the overwhelming conclusion was that this sector is certainly not going away, it will just continue to evolve. And they don’t think the sector will be seeing 100% refundable entrance fees ever again. One of the main issues dealt with the residency agreement, and how important that is to value and marketability. Ten years ago, my guess is that was an after-thought. Today, especially with distressed sales, the fine print is more important than ever before. It can mean success or future failure for the buyer, and it can change the value by millions. While there are still some struggling CCRCs out there, the health of the sector has improved significantly, and should continue to do so.