Seniors housing cap rates drop in 2022; GI Partners raises $1.45B for RE fund

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The average capitalization rate in the seniors housing sector has fallen by 13 basis points year over year, and 2 basis points from the pre-pandemic level in 2020, implying slightly higher asset values, according to CBRE's "U.S. Senior Housing & Care Investor Survey 2022" report.

Cap rates for class B assets showed the most improvement, at a decrease of 17 basis points on average, followed by class A asset cap rates which declined 14 basis points.

Overall, CBRE expects U.S. cap rates to remain lower for longer for reasons including huge demand for commercial real estate and record annual investment volumes.

Half of the survey respondents, which include seniors housing investors, developers, lenders and brokers, expect cap rates to remain flat in 2022. The active adult segment is considered to offer the biggest investment opportunity.

Respondents ranked staffing availability and cost as the greatest challenge within the seniors housing industry, followed by inflation and interest rates.

Market participants are upbeat on the seniors housing sector and intend to increase their exposure in 2022, according to JLL's "Seniors Housing & Care Investor Survey and Trends Outlook" report. Transaction volume in seniors housing were up 61% by 2021-end from the first quarter of the year, reversing a year-over-year decline of 43% in the fourth quarter of 2020, the report said.

Real estate fund

* Private equity and real estate investment firm GI Partners received total commitments of $1.45 billion at the initial fundraising period of its GI Real Estate Essential Tech+Science Fund. The core plus open-ended vehicle will invest in real estate assets that continuously operate to support the technology and life sciences markets.

* Camden Property Trust acquired the remaining 68.7% stakes in its two discretionary funds from Teacher Retirement System of Texas for a total consideration of about $1.1 billion, after adjusting for roughly $520 million of assumed secured mortgage debt. The multifamily real estate investment trust previously owned 31.3% of the funds' interests.

M&A

* Atairos Management LP and NBCUniversal Media LLC will buy a 30% stake in Ryman Hospitality Properties Inc. subsidiary OEG Attractions Holdings LLC, which directly or indirectly owns the assets that comprise country music brands operator Opry Entertainment Group Holdings LLC. The 30% equity investment will be approximately $293 million.

* Online rental marketplace Apartment List Inc. acquired artificial intelligence virtual leasing assistant Diffe.rent AI for an undisclosed amount. Diffe.rent's core technology called Lea helps property management firms increase lead conversion.

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