Kayne Anderson is the third developer to try its hand at high-end New York senior living, a niche of development aimed at serving an expected boom of well-heeled elderly.
The overall occupancy rate for seniors housing for the nation’s largest 31 metropolitan areas was 88.8 percent in the second quarter, down 50 basis points from the first quarter.
The bet is that there are sufficient numbers of the affluent and aging in big cities who won’t want to leave their neighborhoods, even as they suffer cognitive decline.
Despite some fears about the economy in general, industry insiders don’t see any signs of a slowdown in this specialized portion of the real estate world.
The New York-based investor said the deal would increase Sabra’s exposure to skilled nursing facilities, a business where profits are under pressure due to a shift toward different Medicare programs.