Why Active Adult Is An Important Segment For Investors

The Real Estate Espresso Podcast

Why Active Adult Is An Important Segment For Investors

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Why Active Adult Is An Important Segment For Investors

Welcome to the Real Estate Espresso Podcast, your morning shot of what’s new in the world of real estate investing. I’m your host Victor Menasce. On today’s show, we’re discussing the importance of the Active Adult segment in residential real estate.

In discussing residential real estate, it’s crucial to consider demographics. People tend to experience a set lifecycle in housing. From living with parents to securing their first independent place, often a rental. They then transition to owning a home, which can range in size as they start and grow their family. Often, there comes a time of downsizing, which takes a wide range of forms. This reduction in living space often comes hand-in-hand with a decision to choose something lower maintenance, like a condo or rental apartment.

Downsizing also means dealing with an accumulation of belongings from decades past — a process that involves both loss and disruption. Senior housing is often seen more as an unpleasant necessity rather than a choice, especially given the escalating costs associated with it. For example, as a part owner of an assisted living and memory care facility, I can tell you that we charge between $7,000 and $7,500 per bed per month. Independent living is a stepping stone to assisted living, but still costly, averaging between $4,000 and $4,500 a month per person.

Active Adult Housing: A New Category Emerges

This is where Active Adult housing comes into play. This new title represents an age-restricted product with high-end finishes, a wealth of amenities, and a strong sense of community. Active Adult is positioned between a market rate apartment and independent living. It offers a variety of social activities and emphasizes an active lifestyle but also cementing social connections.

Developing an Active Adult Community

We at YStreet Capital are developing an Active Adult product in Spokane, Washington. This goes beyond a mere apartment building. The project is in collaboration with Graystar, the largest apartment operator and developer and operator of Active Adult communities in the U.S. They operate in 38 states. This development promises higher rents than a generic apartment, strengthening the business case for investment.

If you’re interested in learning more about this exciting project, visit our website at ystreetcapital.com. The investment opportunity is only open to accredited investors residing in the U.S. Any investment would be by prospectus only, in compliance with securities regulations.

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