Posted by Nate on March 20, 2001 at 19:04:25:
What I posted about the financing being hard to find for senior housing, is doubly true for assisted living, at least from any bank that has even half a clue.
These things were way, way, way overbuilt during the past few years. Banks in a lot of areas (not so bad around our area, but Atlanta was one I know of) were literally handing out money to anyone who walked through the door and said the words “assisted living”. The problem was that most of these guys were your typical developers who knew nothing about taking care of old people, and did a pretty bad job of it, and also vastly underestimated their operating expenses. So now all these facilities are half-empty, since no one wants to put their Mom in a place run by some idiots, and are facing foreclosure. Even the well-capitalized firms in the industry, like Marriott and Sunrise Assisted Living, have been hit really hard.
I expect it will be several more years before we see a resurgence in development of assisted living.