The number of people in the United States aged 65 and older is projected to surge to 86 million in 2050, up from 41 million in 2010.1 The projected rate of growth of this segment of the population (28 percent) is nearly quadruple that of the general population (111 percent) over the same period.2 These demographic shifts are likely to result in the significant expansion of a senior housing industry that is already quite active. According to a recent article in Senior Housing News, senior housing attracted more investment activity than any other property investment category in 2013 (for the first time),3 and nearly $2 billion in senior housing property sale transactions closed in the first quarter of 2014.4
The ownership and operation of senior housing facilities are structured in various ways. Some operators of senior housing facilities primarily manage facilities that they own themselves5 or lease from third parties (often large health care real-estate investment trusts (REITs)).6 By contrast, other operators primarily manage facilities as third-party managers for unaffiliated owners or lessees.7
