The senior housing industry provides a substantial range of products or segments within the industry under various names. We believe that the best categorization of the industry is defined by the NIC (www.nic.org).

Senior Apartments is real estate with no additional services provided. Seniors who are healthy, active, and need no support or care have a number of options for places to live. These include staying in their current owner occupied single family or mobile home, moving to an active adult community or seniors-only apartment community. Total returns of 9-11% are typical.

Independent Living is a market rate, service-enriched residential property that typically has various types of residences such as: studio apartments; one-, two-, or three-bedroom apartments; or attached or detached single family homes. The property typically includes services such as communal dining, housekeeping, transportation, emergency call, and social programming services in the monthly fee. Property amenities often include a common living area, dining room, library, convenience store, beauty/barber shop, fitness center, arts and crafts center and multi-purpose room. Total returns of 9-12% are typical.

Assisted Living is real estate with services and ADL (activities of daily living) care. ADL includes such things as assistance with getting out of bed or chair, bathing, dressing, toilet use, eating and medication reminders. It may also include assistance with IADLs (instrumental activities of daily living) such as handling finances, money management, phone use, and shopping. People in this category may also need some minor medical care (such as administering medication) or have a physical or cognitive disability. When provided in a senior facility, housing units in this category are most commonly referred to as assisted living units. Total returns of 12-14% are typical.

Skilled Nursing is real estate with services, ADL care and medical care. Medical care includes such things as specific disease, non-ambulatory (bedridden) and intensive medical care. These facilities have been traditionally referred to as skilled nursing facilities or nursing homes. Total returns of 15% plus are typical.

Combined Property is a property that offers two or more levels of care but that does not include both independent living and nursing care (properties including both independent living and nursing care are termed CCRCs). Combined properties include those that offer: independent living and assisted living; independent living and dementia care; assisted living and dementia care; assisted living and nursing care; assisted living, dementia care, and nursing care; and, dementia care and nursing care. Total returns of 10-12%% plus are typical.

A number of senior-focused real estate properties have evolved over the past decade. These facilities include: active adult communities, senior apartments, independent living (ILF), assisted living facilities (ALF), skilled nursing facilities (SNF), and continuing care retirement communities (CCRC). Many of the real estate facilities being built today include more than one category of senior housing type which is designed to support the growing aging-in-place senior housing business model.