After spending greater than 15 years away from the senior dwelling sector, JDI Realty is diving again into the business with a brand new slate of offers.
In simply over a yr, the Chicago-based firm has acquired 10 communities comprising round 1,200 models, with no plans on slowing down within the coming yr.
“We’re discovering that it’s definitely a bit of extra aggressive on the market immediately, however we’re discovering that you may nonetheless win alternatives, and there’s lots of fascinating product on the market,” Adam Seidenberg, vp of JDI Realty, informed Senior Housing Information. “If our portfolio grows to twenty properties by subsequent yr, we’d be actually comfortable.”
The agency notched round a dozen senior dwelling offers within the late Nineties and early 2000s earlier than exiting the business throughout the Nice Monetary Disaster. What introduced it again was a mix of enticing pricing and returns. The “dislocation of the market” in 2023 and 2024 accelerated these tendencies and led to extra offers.
JDI Realty has benefitted from its nimbleness and an openness to work with operators, Seidenberg stated.
JDI’s present companions embody Stellar Senior Dwelling, Well being Dimensions Group, Chapters Senior Dwelling, Symphony Care, American Home Senior Dwelling and Evolve Senior Dwelling. The corporate is preserving its eyes open for extra alternatives elsewhere within the U.S., particularly Midwest and Northeast, Seidenberg stated.
JDI is in search of to amass “missed” properties and is open to secondary and tertiary markets “in the fitting state of affairs.” The final profile it seems for is a “Class B product in a Class A market” or mild to medium worth add Class A communities in main metropolitan areas, in keeping with Seidenberg. The agency is in progress mode inside senior housing, however plans to carry onto its properties for at the least a few years earlier than seeking to promote when efficiency is total stabilized.
“We would like some form of value-add profile,” he stated. “We would like to have the ability to purchase property immediately that has good money move, or at the least some money move, after which actually offers us, together with our working associate, a chance so as to add worth sooner or later.”
Round one-third of JDI’s portfolio consists of senior dwelling communities with common occupancy charges above 90%. The corporate additionally acquired a portfolio of 5 communities in Michigan with common occupancy of about 65% for $100,000 per unit – turnaround alternatives that may and usher in “good money move.”
JDI’s leaders maintain weekly check-ins with the corporate’s working companions. Seidenberg additionally brings operational expertise to the group, having labored with Anthology Senior Dwelling for 5 years, ending as vp of asset administration, earlier than he joined JDI in 2024.
“So long as issues are going properly, we’re not going to be overly intrusive on our operators,” Seidenberg stated. “We would like our operators to do the work that they’re the very best at, which is working the properties. We’re fingers on, nevertheless it’s all relative.”
Transferring ahead, JDI plans to proceed rising its presence throughout the senior dwelling sector by extra acquisitions. The perfect profile, in keeping with Seidenberg, consists of worth per unit under alternative prices, sturdy demographics, constructed up to now 25 years, median family incomes above the nationwide common and a transparent path to stabilization.
“We’re actually enthusiastic about that progress, and we wish to proceed to maneuver on it,” Seidenberg stated.
