Hamilton Equity Partners’ tactical objective will focus on the purchasing, development and leasing of skilled nursing homes and assisted living facilities, utilizing real estate acumen for strategic vision and portfolio aggregation.
With the aging of the baby boomer generation, demand for skilled nursing and assisted living facilities intensifies and grows. The American population is expected to reach 73 million by the year 2030, almost double the population of 2000. Additionally, a growing market trend within the healthcare industry encourages the transfer of patients to the lowest acuity facility available to provide for their care. The increase in the elderly population, coupled with the aim to lower caretaking costs, will elevate the number of individuals utilizing senior care facilities.
With current fiscal pressures and the roll-out of the Affordable Care Act, financial reimbursements and incentives are driving individuals to seek low cost care. To broaden the pool of eligibility for lower cost services, regulations are being modified to incentivize the lower cost of care.
The senior care industry possesses much fragmentation, with only a few major operators in existence. While recent M & A activity has been showing consolidation in this market through acquisitions by some major healthcare REITS, such as Ventas, Omega, and AVIV, there are still opportunities for an industry rollup which focuses on the smaller and more regional operators. Hamilton Equity Partners will be purchasing and leasing properties to acquire a share of this sizeable market segment.