Now is the Time to Sell

Deciding when to sell your Seniors Housing or Long Term Care Facility can be extremely difficult, and as a result, certain market variables must always be monitored. As 2010 comes to a close, it is important to think about what 2011 will bring for the Seniors Housing Market.

As we start a new decade, facilities that were built in the early 2000's are no longer considered new or innovative assets. Buildings that are 8-15 years old often were built with a different design than if built today.

For example:

* Majority of units are studios or small bedrooms
* Limited common space
* No secured unit for Memory Care
* Physical plant prohibits catering to higher level acuity residents

The above facilities will eventually become functionally obsolete. Facilities built in the last 24 months have large rooms, 1-2 bedrooms, and an abundance of common space.

Selling older facilities today will insure you maximize your value and investment. Now may be the perfect time to sell before your asset drops to the next tier and your exit value decreases.

Another reason to consider selling your facility is capital gain taxes. In 2010 we have had all-time low capital gain tax rates. Sellers that don't act soon may miss out on low capital gain rates. There are significant discussion that there will be a capital gains tax rate increase in 2011. Selling your Seniors Housing Facility now can help to ensure you lock in lower tax rates on capital gains.

If you are interested in learning what your facility is worth today, please call (312) 896-0123