By 2040 the US population over 65 is expected to increase by over 68% to 82 million people, while the over 75 demographic adding 22% over the next five years.
As our population gets older and lives longer, these demographic tailwinds are converging with a senior housing infrastructure where almost 50% of the assets are over 20 years old and need replacement or significant upgrades. This population growth, coupled with new construction well below a normalized average of 4%, has created an imbalance of supply and demand.
Senior housing operators are responding by adding new capacity, which creates opportunities for H-PACE™ financing to provide capital for eligible investments in senior housing communities.
In addition, these H-PACE™ eligible improvements, often representing as much as 20% - – 30% of total project costs, can improve the health and wellness experiences of employees, residents, and their families and help create safer, more eco-friendly environments that attract new residents and increase occupancy rates.
In addition, financial returns for owners and developers can be improved – and balance sheets strengthened – as H-PACE™ reduces the reliance on senior leverage and supplements equity investments at rates and structures more favorable than mezzanine capital.
To get started with H-PACE™, you can completed a PACE360™ Assessment where we review your CapEx budget or construction budget details at no cost to determine how much of your planned spending will qualify for H-PACE™ financing.
We will assess your project or portfolio, confirm PACE eligibility, uncover the maximum amount of PACE financing available and provide general terms, structure, and the process to achieve a successful funding.