The poor economy has affected everything in its wake – including senior housing. We see this most in Continuing Care Retirement Communities, which require a large “down payment” or entrance fee to gain residence. Unlike such communities,
Omega’s rental model doesn’t require an entrance fee, while offering greater flexibility to accommodate future inflation or economic uncertainties.There are also many opportunities to use the Omega development model to convert any acquired independent living units to assisted living units, should there be a need.
As a result of the perceived ‘need’ for such “entrance fee” properties and the related economic shifting of the country, numerous facilities around the country have been forced to seek protection from creditors and regulatory authorities through bankruptcy, insolvency, or receivership proceedings.
The result has seen an increase in the number of available existing independent or assisted living facilities that may be acquired for substantially less than the initial cost of construction or the replacement cost.Through its nationwide network of relationships, Omega has begun a dialogue with several new and existing facilities about some form of business combination or acquisition of the project by Omega. Omega has put together a ‘best practices model’ by acquiring top-notch talent across numerous specific fields in order to distinguish itself from other, more traditional senior living community partners. This fresh approach to the changing world of senior living community development and ongoing management gives Omega an advantage when approaching development or acquisition opportunities. We at Omega believe there are at least 25-30 current and immediate opportunities for acquisition – all of which meet current underwriting criteria, while still providing substantial start-up value.