Request For Senior Housing Case Study For Friday Interview

Hey everyone,

I need some help. I have an interview at a boutique REPE firm that focuses on senior living, and they mentioned that there will be a case study component. Has anyone done a case study on senior living who would be willing to share what they were asked, and if the case was more modeling-focused or more similar to a consulting case study where it was more qualitative? Additionally, if it was modeling-focused, would you mind sharing what important assumptions I should look for?

Thank you so much in advance!

4 Comments
 

Based on the most helpful WSO content, here's a bit of guidance for your upcoming interview with a focus on senior housing:

  • Case Study Nature: It's common for real estate private equity case studies to have both qualitative and quantitative elements. You might be asked to analyze a deal from a high-level strategic perspective (qualitative) and also to build or interpret a financial model (quantitative).

  • Modeling Focus: If the case study is modeling-focused, you'll likely need to be familiar with the unique aspects of senior housing. This includes understanding the different types of senior housing (Independent Living, Assisted Living, Memory Care, Skilled Nursing), their revenue drivers, and expense structures.

  • Important Assumptions:

    • Occupancy Rates: Critical for revenue projections. Senior housing can have varying levels of occupancy based on location, services offered, and competition.
    • Rent Growth: Assumptions about how much rents can increase year over year.
    • Operating Expenses: Including staffing costs, which are significant in senior housing due to the need for specialized care.
    • CapEx: Future capital expenditure requirements for maintaining or improving the property.
    • Exit Cap Rate: This will affect the valuation at which you can sell the property in the future.
  • Qualitative Factors:

    • Market Demographics: The local population of seniors and their adult children, as they often influence the decision to move into senior housing.
    • Competition: The number and quality of existing senior housing facilities in the area.
    • Regulatory Environment: Any state-specific regulations that could impact operations.

Remember, the key to a successful case study is not just getting the numbers right but also being able to articulate your assumptions and the rationale behind your investment decision. Good luck with your interview!

Sources: https://www.wallstreetoasis.com/forum/real-estate/senior-housing-question?customgpt=1, Assisted Living - Pros and Cons, 2 Hour Case Study?, What is Your ADDITIONAL Reason to invest in Multi-Family?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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