Focus Healthcare Partners is excited about the investment opportunities following the successful completion of fundraising a $370 million fund. The new fund, Focus Senior Housing Fund II LP, is 20% larger than the previous fund and took two years to complete.
Principal and Co-Founder, Curt Schaller, believes the new fund could lead to the company’s most active investment year since its establishment in 2015. According to Schaller, the current investment landscape is highly favorable for new transactions.
Schaller mentioned, “It’s the best investment environment I’ve seen in the 25 years I’ve been in senior housing,” reflecting the positive outlook for Focus Healthcare Partners. The fund will primarily be used for acquisitions in active adult, independent living, assisted living, and memory care sectors, with some new development opportunities on the horizon.
Opportunities in the core-plus side of senior housing are plentiful, with attractive cap rates and quality assets available below replacement cost. Factors contributing to this investment opportunity include low construction starts, the impact of the Covid pandemic, and maturing debt loans pressuring some operators and owners to sell properties.
Despite challenges in real estate capital markets, senior housing demand fundamentals remain strong due to the incoming baby boomer generation. Focus Healthcare Partners is experiencing higher returns on investments compared to five years ago, with returns between 300 and 400 basis points higher.
In conclusion, Schaller emphasized, “You’re just looking at a very unique investment market,” highlighting the promising investment conditions that Focus Healthcare Partners is gearing up to seize.
