A PLATFORM FOR SUCCESS
A CONVERSATION WITH BRUCE GIBSON
I’M SPEAKING WITH BRUCE GIBSON, PRINCIPAL AND SENIOR MANAGING DIRECTOR OF SENIOR HOUSING INVESTMENT ADVISORS REGARDING SHIA’S UNIQUE PLATFORM AND SOME OF HIS THOUGHTS ON THE SENIOR HOUSING SECTOR.
GOOD MORNING, BRUCE.
Good morning, Charles.
BRUCE, GIVEN THAT YOU HAVE MORE THAN A DECADE IN THE SENIORS HOUSING INDUSTRY, WHAT IS IT THAT INVESTORS AND LENDERS ARE LOOKING FOR IN TODAY’S MARKET?
Over the years, seniors housing has emerged as a staple in the real estate market. However, unlike the retail, office, hotel or other sectors, seniors housing has an undeniable long-term growth pattern that will continue to shape the investment market over the next 20 years. There will be some ups and downs, but the trend will clearly be one of solid, predictable returns. With that said, to last more than just a few years, investors and developers must take a rational, disciplined approach to that coming growth. And that’s reflected in the current loan underwriting and investment criteria of most firms.
While individually, investors and lenders may be looking for different returns, investment timelines, risk tolerances or levels of control, most are looking for the same characteristics in a client or partner – quality of operations, ability to execute, integrity and human capital. With the right combination of these factors and the solid fundamentals of the industry, whether it is a value-add play, new development or acquisition of a stabilized property, there should be plenty of room for dynamic growth and quality returns.
BRUCE, FROM A CLIENT’S PERSEPCTIVE, WHY DOES SHIA HAVE SUCH A COMPELLING PLATFORM?
Well, Charles, SHIA’s platform is based on several fundamental principles. The most important of these is regularly reviewing what services our clients want from an advisor and what that client’s real estate and financial goals and needs are, both long-term and short-term. By working to truly understand these needs from the client’s point of view, SHIA can often be proactive in providing solutions. SHIA looks at client relationships as enduring, not just a transaction. It is this type of relationship with clients that allows SHIA to better match buyer with seller or operator with investor. We understand that a really successful transaction is more than just numbers. It involves having a certain level of comfort with and confidence in the other party, as well as making sure the corporate cultures mesh properly.
Additionally, throughout the SHIA platform, corporately and with our Strategic Advisors, you will see that we have carefully selected only the absolute best from each facet of the real estate side of seniors housing. This includes professionals with tremendous expertise in structuring complex transactions, debt and equity placements, financial analysis and valuation or regulatory matters. We are proud of our depth chart of industry luminaries who have enjoyed many years of success. And all of this translates to immeasurable competitive advantages for our clients.
HOW HAS THE SALE PROCESS FOR SENIORS HOUSING PROPERTIES CHANGED OVER THE YEARS?
The process has actually evolved quite a bit. We could certainly discuss the many technological changes in the marketing, due diligence and transaction stages, but perhaps the most significant change is in how the market players see the process. What I mean by this is the fact that many owners and investors have been disillusioned by the typical mass market auction process with multiple rounds of bidding and hoops to jump through. That is not to say that there is no place for the auction process, but simply that its role should be limited to specific situations that require it. SHIA’s forte, since its inception, has been to discretely, but efficiently, locate the most appropriate and capable group for a particular transaction or situation. This requires having an in-depth knowledge of the market participants, their capabilities and styles of doing business, in addition to an acute understanding of the opportunity at hand. Having solid relationships with a vast range of industry decision makers, extensive research and high-caliber professionals, allows SHIA to deliver superior results while being sensitive to the time and capital constraints from both sides of the table.
GOOD MORNING, BRUCE.
Good morning, Charles.
BRUCE, GIVEN THAT YOU HAVE MORE THAN A DECADE IN THE SENIORS HOUSING INDUSTRY, WHAT IS IT THAT INVESTORS AND LENDERS ARE LOOKING FOR IN TODAY’S MARKET?
Over the years, seniors housing has emerged as a staple in the real estate market. However, unlike the retail, office, hotel or other sectors, seniors housing has an undeniable long-term growth pattern that will continue to shape the investment market over the next 20 years. There will be some ups and downs, but the trend will clearly be one of solid, predictable returns. With that said, to last more than just a few years, investors and developers must take a rational, disciplined approach to that coming growth. And that’s reflected in the current loan underwriting and investment criteria of most firms.
While individually, investors and lenders may be looking for different returns, investment timelines, risk tolerances or levels of control, most are looking for the same characteristics in a client or partner – quality of operations, ability to execute, integrity and human capital. With the right combination of these factors and the solid fundamentals of the industry, whether it is a value-add play, new development or acquisition of a stabilized property, there should be plenty of room for dynamic growth and quality returns.
BRUCE, FROM A CLIENT’S PERSEPCTIVE, WHY DOES SHIA HAVE SUCH A COMPELLING PLATFORM?
Well, Charles, SHIA’s platform is based on several fundamental principles. The most important of these is regularly reviewing what services our clients want from an advisor and what that client’s real estate and financial goals and needs are, both long-term and short-term. By working to truly understand these needs from the client’s point of view, SHIA can often be proactive in providing solutions. SHIA looks at client relationships as enduring, not just a transaction. It is this type of relationship with clients that allows SHIA to better match buyer with seller or operator with investor. We understand that a really successful transaction is more than just numbers. It involves having a certain level of comfort with and confidence in the other party, as well as making sure the corporate cultures mesh properly.
Additionally, throughout the SHIA platform, corporately and with our Strategic Advisors, you will see that we have carefully selected only the absolute best from each facet of the real estate side of seniors housing. This includes professionals with tremendous expertise in structuring complex transactions, debt and equity placements, financial analysis and valuation or regulatory matters. We are proud of our depth chart of industry luminaries who have enjoyed many years of success. And all of this translates to immeasurable competitive advantages for our clients.
HOW HAS THE SALE PROCESS FOR SENIORS HOUSING PROPERTIES CHANGED OVER THE YEARS?
The process has actually evolved quite a bit. We could certainly discuss the many technological changes in the marketing, due diligence and transaction stages, but perhaps the most significant change is in how the market players see the process. What I mean by this is the fact that many owners and investors have been disillusioned by the typical mass market auction process with multiple rounds of bidding and hoops to jump through. That is not to say that there is no place for the auction process, but simply that its role should be limited to specific situations that require it. SHIA’s forte, since its inception, has been to discretely, but efficiently, locate the most appropriate and capable group for a particular transaction or situation. This requires having an in-depth knowledge of the market participants, their capabilities and styles of doing business, in addition to an acute understanding of the opportunity at hand. Having solid relationships with a vast range of industry decision makers, extensive research and high-caliber professionals, allows SHIA to deliver superior results while being sensitive to the time and capital constraints from both sides of the table.