Better Times Ahead, Pritzker Assures Industry
	Data Reflects Mixed Bag for Seniors Housing Performance
	Cambridge Realty Capital Sees Growth Opportunity Amid Downturn
	Exclusive Seniors Housing Survey, Chance to Win Gift Card

Despite the many challenges facing seniors housing owners and operators stemming from an unprecedented housing slump and credit crunch, the long-term future of the industry remains bright, according to Penny Pritzker, chairman and founder of Classic Residence by Hyatt.

Pritzker gave her assessment of the industry during a keynote speech last Thursday in Chicago at the annual convention of the National Investment Center for the Seniors Housing and Care Industry (NIC).

“Seniors housing is a service that people will want in the future," said Pritzker in her remarks. She noted that by the year 2030, nearly 20% of the population will be age 65 or older, translating into about 71 million potential customers for the industry.

While vacancies at seniors housing buildings are still on the rise, so too are rents. And though concessions remain widespread, signs are emerging that vacancies may start to decline as new construction comes to a halt.

That’s the conclusion of the National Investment Center for the Seniors Housing and Care Industry (NIC) based on an analysis of second-quarter data in the nation’s top 31 markets. The results were released at NIC’s annual conference that occurred Sept. 23 through Sept. 25 at the Sheraton Chicago Hotel & Towers.

Vacancies at independent living buildings now average 11.7%, up from 9.3% a year ago. Assisted living vacancies stand at 12.4%, up from 11.1% a year ago. Over the same period, nursing home vacancies rose only slightly to 10.8% from 10.2%.

Cambridge Realty Capital Cos., which has completed more than $2.75 billion in seniors housing and healthcare debt and equity investments since the mid-1990s, sees no time like the present to expand its investment portfolio.

The Chicago-based firm traditionally has invested in existing properties with historical cash flow predictability and experienced owner/operators, explains Jeffrey Davis, chairman of Cambridge Realty Capital.

Going forward, the company will expand its investments to include the discounted debt of similar assets using strict investment criteria and screening.

As part of National Real Estate Investor's pledge to provide you with timely analysis of trends in the seniors housing community, we are launching a quarterly survey that aims to answer the burning questions of the day. In which segment, for example, are the best investment opportunities? What effect is the housing market having on the demand for seniors housing? Is capital available today, and if so from what sources? Ultimately, our goal is to provide you with indispensable information. To ensure the success of our survey, we would like to enlist your help. Please take a few minutes to click through to the link to our questionnaire, the results to which will be summarized in a future report and shared with members of the seniors housing community. Additionally, you will have the opportunity to enter into a drawing for one of two $100 Visa gift cards.

Click here to access the Seniors Housing Survey.