Senior Housing Fund
Why Invest in Senior Housing
What Is a Senior Housing Fund?
A senior housing fund, also known as a senior living fund, is an investment vehicle dedicated to or focused on the senior housing sector. As a growing asset class in commercial real estate, a fund provides opportunities to invest in senior living and senior housing properties without having to own or manage those properties.
Wilshire Finance Partners (WFP) has several ways individuals can become involved in seniors housing, from more passive investments through the WFP Income Fund, or the WFP Opportunity Fund, to more active investments through direct limited partner investments and other investments in specific senior living facilities.
Why Invest in Senior Housing
The aging American population is transforming the senior housing sector and fueling heightened demand in the industry, creating a compelling investment opportunity for investors. By 2030, all baby boomers will be aged 65 and older, a population now estimated at about 73 million strong, or 22% of the population. This demographic shift presents an opportunity for investors who want to invest in a growing sector of the real estate market without having to manage property or be tied to the volatility of the stock or bond markets through public REITs and other exchange traded investments. Further, investors can benefit from a diversified senior living fund across facilities and geographic locations through a single investment.
As one of the most recession-resistant real estate asset classes, the senior housing sector—specifically assisted living facilities—has weathered various economic challenges extremely well.
With greater access to senior housing through private credit investment opportunities, accredited investors can capitalize on the rising tide of senior and earn strong returns in a resilient industry that also gives them the ability to invest with purpose. Investing in seniors housing allows investors to make a positive social impact that improves the quality of life for older adults.
Types of Funds
The WFP Income Fund is a short-term private credit fixed-income investment that seeks to provide stable income and principal protection to its investors primarily through the Income Fund’s investments in first trust deeds and mortgages secured by seniors housing, healthcare, multifamily, and commercial real estate.
The WFP Opportunity Fund seeks to provide attractive risk-adjusted returns to its investors through debt and equity investments in real estate within the United States. Underlying investments in the Opportunity Fund will include, without limitation, direct and indirect equity investments, joint ventures, deeds of trust and mortgages secured by senior housing, healthcare real estate, multifamily, and commercial real estate.
Investment Criteria and Factors
Wilshire’s team carefully evaluates investment opportunities through the WFP Income Fund and WFP Opportunity Fund. Specifically, our team looks to invest $1,000,000 - $10,000,000 in value-add acquisitions and refinances that create greater investment opportunity at a lower cost basis, finance senior living facilities that serve lower- to lower-middle income seniors to fill a need in the seniors housing market, and foster relationships directly with regional owners and operators who have a passion for serving seniors and a clear understanding of their facility(s) and local market.
With our deep knowledge in the senior housing sector and cross-industry expertise in banking, real estate law, and investment management, our WFP Income Fund has delivered a stable net asset value (NAV) since inception, higher-risk adjusted returns, and greater diversification through our investments in first trust deeds and mortgages secured by, among other properties, senior housing real estate. Further, our WFP Opportunity Fund has provided investors with access to investments in Senior Housing Facilities that can provide equity-like returns.1
Accredited investors are invited to learn more about Wilshire’s private credit investment opportunities in seniors housing. Request our WFP Income Fund Investor Kit and our WFP Opportunity Fund Investor Kit for additional information.
1 Past performance is not indicative of future result.
Senior Housing Private Lending
As seasoned senior housing lenders, Wilshire Finance Partners is a leading private debt fund that provides capital solutions in senior housing and senior living ranging from $1 million to $10 million for various properties and projects. Wilshire’s lending philosophy in the senior housing sector is two-fold: First, as an asset class, senior housing is a resilient, needs-based real estate with increasing demand. By 2030, all Baby Boomers will be 65 years and older, according to the U.S. Census Bureau, which means more housing and services will be needed to meet the needs of seniors in the future.
Second, our lending philosophy goes beyond transactions and straight to the heart of the people involved. Wilshire partners with individuals and groups who care about the older adults they serve and are making business decisions in the best interest of both residents and employees. These are not altruistic endeavors, however. Care costs money and the business and financial model must work. In order to consistently deliver a certain level of care to their residents, whether it’s a non-profit or for profit facility, the senior housing facility must generate sufficient revenue to cover the costs of all of its operations and in the case of a for profit model, a return to its investors.
Benefits of Senior Housing
Senior housing is a unique blend of real estate and healthcare, and the benefits to supporting and lending in this asset class are innumerable. Not only will demand for services and housing continue, so will economic opportunities created by the sector. Everyone wants to see their loved ones thrive and be cared for in their later years of life. At Wilshire, supporting these efforts to create housing opportunities, quality care, and more choices for aging seniors is not only a sound investment, but it directly and indirectly benefits Seniors.
Email investments@wilshirefp.com, request an investor package, or call us at (866) 575-5070 if you have any questions.
