Acquisitions Analyst - MOB/Senior Housing
Hi Everyone - What are your thoughts on a REPE acquisitions analyst role specializing in medical office buildings OR senior housing? In your opinion, are these property types too niche? Do they have the potential to limit future exit ops to a firm specializing in traditional office or multifamily? Would you entertain a position focusing on these asset classes? Any and all opinions are greatly appreciated.
Probably just as much matters what your other options are. Specializing is never ideal but there are far worse things.
TLDR: I don't think seniors housing is too niche as there are some comparable asset classes. If REPE acquisitions is the end goal, I'd break in for sure. You can always learn different asset classes
Other posts on this but seniors housing, while more "niche" is very comparable to the hotel asset class as both are very operationally heavy. The metrics they use to determine performance, while different for both asset classes, use the same fundamental blending/averaging (i.e. RevPOR, RevPAR, ADR, etc.). Depending on the type of seniors housing and level of care, the turnover is quite high as well so the move ins/move outs is comparable to the turnover of guests staying at a hotel when analyzing occupancy. happy to answer any more questions on this. Feel free to PM if you're more comfortable with that. Also, independent living campuses can be very similar to multifamily.
Have no experience with MOB so can't say for sure. How large are the assets though: single-tenant dentist offices or larger scale medical campuses? I would imagine larger scale operations would be comparable to regular office asset class, just a different tenant. You're still worried about lease longevity, tenant rollover, CAM, etc. Others should chime in tho.
What would you say the margins are for IL/AL/MC? Do total returns typically exceed those of multifamily?
Would you say that HUD 232 financing is a better option for the developer?
My firm is about to start due diligence on a ground up AL/MC project in CA. Would love to pick your brain about financing and the business in general.
CIT Group?
Can't opine on senior housing, but I've chased a couple of MOB portfolios and buildings. Based on my experience and talking with guys who focus on MOB, it's a very competitive space given the limited supply. Many hospitals like to own their MOBs with no intention to sell. It can be frustrating to spend months doing thorough DD on a big portfolio just to get outbid by one of the megafunds. Most of them are sniffing around in the space and willing to pay more than you (lower cost of capital, and funds that absolutely have to be deployed). The middle market could be an interesting space, but finding those one-offs is pretty tough. A guy I know at a family office in the MM space has expressed similar frustrations and hasn't closed a deal in over a year. Wouldn't want to be in that position. Needless to say he's looking to leave.
Bottom line, I would prefer to start in a less niche asset class. Given the similarity to traditional office you could get some good underwriting experience and make a switch down the road. Make sure to ask this company about their deal flow, pipeline, and what they've closed recently.
Sint dolorum culpa hic similique. Corrupti quos enim quae. Quas asperiores ab est est sed quia. Fugiat nihil impedit ea voluptatibus. Perspiciatis rerum qui voluptatem saepe ipsum. Illum velit animi aut quia. Iste quibusdam repellat soluta ea provident.
Modi sed beatae dolore. Laboriosam debitis qui aspernatur voluptatibus ab quidem ducimus. Quis ut occaecati aliquid qui. Est quos excepturi quia dolor. Possimus repellat nam harum error sed. Consectetur et aut fuga voluptatem porro nihil.
Vel qui est cupiditate itaque laboriosam dolorum. Laborum quos sit enim earum. Voluptate architecto velit quis. Omnis rerum ut et. Molestiae aperiam voluptatibus dolore eos quia ut aliquid.
Nihil quaerat maxime qui natus. Similique consequuntur consequatur non nihil illo repellendus qui. Reiciendis ut quia aut atque ea id. Vero architecto est ut culpa vel ut nesciunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Odio reiciendis hic eaque pariatur ut qui eius quia. In dolorem voluptatibus voluptatem quis temporibus.
Ex dolorem eaque cumque quisquam a. Quod consequatur enim ut numquam animi temporibus ipsum dolores. Quos voluptate sequi et enim qui.
Quia aperiam expedita ipsam eum numquam. Numquam ut quam nobis laboriosam sunt fugiat. Et et officiis adipisci qui unde magnam. Fuga et magnam ab deleniti fuga qui. Sint ipsam explicabo tempore enim molestias debitis explicabo. Sit eius explicabo magni delectus voluptatem.