Which space is red hot for investors?

He pointed to one area that makes the segment unique: “Every one of these properties has a business inside of it running every day 24/7. A lot of the value of the property doesn’t just come from the dirt but from the business side of it. So, it requires a pretty strong expertise – understanding the operation of the business, understanding the regulations, understanding where the market is headed. Very, very niche.”

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Despite facilities’ ties to COVID, the segment is red hot: “There’s a lot of money chasing a lot of different transactions, but definitely this one because of the higher return,” Saroka said.

The brisk nature of the segment has yielded Saroka’s unit as the fastest-growing at Eastern Union, he said. “We’re definitely the fastest-growing division because the market itself is getting a lot more entrants if you look at other parts of the industry, especially today with interest going up. There’s a higher return with these properties. When interest rates go up, you may not be able to achieve a return with an apartment building but you can achieve that return with an assisted living despite the fact the interest rates went up 1%, 2%.”

An aging population also helps boost the already burgeoning potential for the segment, Saroka noted. “Baby boomers are hitting their 70s and 80s, and they may not be able to stay at home,” he said. “People are seeing that, so there’s a demand for it. It can be new development or existing assets. People are just more interested in getting involved because they understand there’s a very strong demand for it.”