Neal Bawa sees 55+ adult communities in affluent markets as undervalued investment opportunities. Unlike assisted-living facilities, they avoid heavy regulation and medical obligations while attracting stable tenants who stay longer. He expects prices to normalize after 2021's peak, making these properties attractive A-grade assets.
I love 55+ because assisted living is a hotel inside a hospital. Well, 55+ is neither a hotel or a hospital. So I think 55+ adult, especially in affluent markets, is something to really, really look at. They were very expensive. They were selling for ridiculous prices, you know, in 2021. So I just stayed away. But I think that once the market corrects and you see something reasonable, I think that 55+ in affluent markets be A-, A- kind of assets. I think that's amazing because you get all of the benefits on the assisted living side. You get older tenants that stay for a longer time, but you're not really dealing with all the legal and the legislation to, you know, feed them and make sure that they get drugs. None of that's happening with 55+. Even though people say 55+, but do you know that the average tenant in a 55+ community is almost 70 years old? So you get all the benefits, you get none of the downsides.
