The article introduces Common Sail Investment Group, a company focused on senior living investments and developments. It discusses the growing senior housing market and attractive investment opportunities as the elderly population increases. The article analyzes market trends, investment risks and returns, development costs and other key factors to consider when investing in this sector.
Overview of common sail investment group and focus on senior housing
Common Sail Investment Group is a real estate private equity firm specializing in senior housing including independent living, assisted living and memory care communities. With extensive industry experience, Common Sail identifies promising development opportunities and partners with premier operators to build high-quality senior housing.
Growth outlook and market potential for senior living
The senior living industry is seeing strong tailwinds as the aging baby boomer generation drives demand. Occupancy rates and rents continue rising across most senior housing segments. With favorable demographic trends, senior housing presents an attractive sector for real estate investors.
Investment risks and mitigation strategies
While senior living offers relatively stable, recession-resistant cash flows, investors still face risks like construction delays, regulation changes, staffing challenges etc. Common Sail conducts rigorous underwriting and partners with top operators to minimize execution risks.
Financial returns benchmark and typical deal structure
Senior housing investments can generate equity IRRs of 12-18% plus cash flow yields of 7-9% annually. Common Sail utilizes moderate leverage of 50-60% loan-to-cost to enhance investor returns. The fund also takes a value-add approach to maximize asset appreciation.
With strong demand growth driven by an aging population, senior living presents a compelling sector for real estate investors. Common Sail Investment Group provides attractive risk-adjusted returns by targeting prime markets and working with best-in-class operating partners.