Senior Living, Skilled Nursing, Assisted Living, Independent Living, Memory Care and Rehabilitation Facilities
Since our inception in 2009, Wedgewood has been driven to capitalize on the evolving opportunities created in today's dynamic real estate market. In 2010, Wedgewood identified the Senior Housing and Assisted Living market sector as a natural fit for our skill sets. This market includes independent living, assisted living, memory care and rehabilitation facilities.
Our investment strategy balances the needs of capital as well as operations and structures investments to meet standards of high quality care. Deep ties within the Senior Living Investment industry allow Wedgewood to partner with the strongest operating partners, facility managers and development teams. Since our inception, Wedgewood has advised on the funding of both debt and equity transactions in the senior housing industry across a wide range of real estate participants, including investors, developers, owners and operators. Wedgewood has an active pipeline of investment projects and transactions in the Senior Living Industry across the United States.
Since 2005, senior housing has outperformed other property types on the National Council of Real Estate Investment Fiduciaries (NCREIF) Index in terms of appreciation, income and total return. During the past seven years - including the recession - the total return for senior housing has been 10.95% compared with 7.09% and 6.95% for the composite index and multi-family only, respectively. Senior housing and traditional multi-family property types have sustained occupancy better than other commercial property types throughout the period of economic stress (2008-2012). The senior housing sector has been able to achieve a higher rental rate growth year-after-year than any other commercial property designation. Many operators have sustained and even increased their communities' net operating income levels, in spite of a slight senior drop in census due to increased rental rates. Thus seniors housing has offered a greater stability in earnings than other real estate property types since the economic recession.
Approximately one million Americans now reside in senior care facilities and this number is expected to double by 2030. The U.S. Administration on Aging projects that the 65 and older population will reach 72.1 million seniors by then which amounts to 19% of the entire U.S. population. Ten thousand people turn 65 years old every day in the U.S., ensuring continued growth and expansion of the senior housing market.
At Wedgewood, we maintain relationships with developers, operators, lenders and investors who are active throughout the life cycle of senior housing facilities.