Virtus Real Estate Capital is getting closer to its goal of investing up to $70M by year's end in senior living investments. The latest addition for the fund is the $25.4M investment in an $82M JV deal for the acquisition of a two property portfolio (322 total units) in Vermont. Virtus director of healthcare acquisitions John Sweeny (here with his wife, Katherine, and their little boy), tells us the dedicated fund invested approximately $60M of equity in 2013 and $40M of equity so far this year. Typically, senior debt for Virtus ranges from approximately 65% to 75% leveraged, he tells us.
Virtus now has 19 senior living properties across the US. John tells us senior living properties are increasingly attractive because of the market’s strong investment fundamentals including high occupancy, favorable supply and demand characteristics, fragmented nature, and the growth and expansion opportunities. Demand will be fueled by changing demographic trends, including the aging baby boomer generation and the increasing lifespan, John says. To date, there’s also low industry market penetration versus long term-industry potential, which presents an excellent opportunity for investors. Away from the office, he likes to relax by hitting the links and traveling with his family.
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