The seniors housing and healthcare markets represent a large segment of the U.S. economy.  Domestic healthcare expenditures comprise approximately 17% of gross domestic product and are expected to reach 20% of GDP by 2017.  Moreover, we estimate the aggregate value of the nation’s seniors housing properties (Independent Living, Assisted Living and Skilled Nursing Facilities) to be approximately $223 Billion, of which a fraction is owned by public real estate investment trusts and other institutional investment companies.  The seniors housing industry is highly fragmented and characterized predominantly by numerous local and regional seniors housing operators.  Seniors housing providers may operate freestanding independent living, assisted living or skilled nursing residences, or communities that feature a combination of seniors housing options such as CCRCs, which typically consist of large independent living campuses with assisted living and skilled nursing capabilities.  The level of care and services offered by providers varies along with the size of communities, the number of residents served and the design of the properties.

The seniors housing industry has evolved to meet the growing demand for senior care generated by an aging population demanding new and better living alternatives.  The well-documented mega-trend involving our aging population and the aging “baby boom” generation represents one of historical significance and will impact real estate and financial markets for decades to come.