I just took a new job at a boutique private equity shop with a fresh allocation to invest in primarily senior and student housing all over the US. I am moving from the investment sales side supporting multifamily.
My new job will be a mix of modeling, due diligence, and asset management. Will be in an apprentice role directly under the founder/leader. My first task is to design an entirely new model that will project forward operating cashflows, handle a variety of draw schedules, and roll into a dynamic waterfall tab that can handle LIRR, EM, and CoC variants.
Two questions for those willing to help me out:
- Can anyone point me to some excellent primers on the seniors and student housing space?
- Is anyone willing to trade their senior or student housing models for some of the materials I have? I have pretty much everything under the sun but can't be specific in this post.
This forum has been such a resource for me. I am also happy to opine on my path and give anyone advice on how to get to where they want to go. I have been on the brokerage, development, and now the REPE side of the equation.
Hi InVinoVeritas, any of these discussions helpful:
No promises, but sometimes if we mention a user, they will share their wisdom: TX RE-DEV manojkmr455 heavybrea
Fingers crossed that one of those helps you.
Hows your deal flow looking?
Great on the student side, bad on the senior side. We can't find anything senior that will work with our current cost of capital after adjusting pro forma rents and expense growth to realistic assumptions. Our existing portfolio is taking longer lease to lower than pro forma rental rates across the board. Also, looming or underway minimum wage changes are going to crush operating margins.
NIC has an investment guide on senior housing that is around $50.
What kind of seniors housing? Middle market? High-end luxury units?
A couple of NIC reports might be decent to give you a broad brush stroke overview. NIC is okay but it doesn't cover every market, so I'd ask what markets you're focusing on. Senior Care Investor, and Green Street Advisors has good info on Senior Housing and student housing, as well. These are paid subscriptions tho, so unclear how much you'll be able to glean. Argentum might have some decent public data. Any paid subscription tho of course be wary of. Similar to a CoStar report...who's putting the data together and how accurate/reliable is it? All in all, should be able to directionally get your head around what's happening within the industry.
I'd also look at REIT supplementals and earnings releases - ou should be able to get some high-level transaction data and what they're paying for per unit and in what markets.
Happy to answer more specific questions if you have them. PM if you want as well.
Thanks for the reply. We like middle market more but nearly impossible to develop to the middle market. We are trying to get a new tranche of capital for middle market value-add acquisitions with a lower cost of capital.
We are a small group that runs lean with a limited budget - is there any way your could PM me some of the subscription stuff? I can reciprocate with some materials I have.
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