Investing in Healthcare REITs - Potential

Residents of assisted living facilities (ALFs) and nursing homes receive 24-hour care that includes meals, exercise, medication, and social activities. If needed, staff members assist the residents with activities of daily living, such as bathing and dressing.

ALFs are attractive options for individuals interested in investing in the healthcare sector. Statistics show that the elderly population of the United States is increasing. Since 2010, the American population aged 65 years and older has grown by more than a third, a faster increase than all other age groups. Projected numbers indicate that this group will reach 80 million by 2040.

Such trends in the American age demographics influence the demand for healthcare services. To serve the increasingly aging population, ALFs are bound to become a booming industry that attracts real estate investors.

Investing in ALFs can take many forms. After purchasing an ALF, an investor may privately operate it or rent it to a third-party management company. Alternatively, investors can opt for a simpler but profitable opportunity: investing in a real estate investment trust (REIT).

REITs are property-owning companies that help investors allocate their funds in real estate assets. Healthcare REITs own facilities such as hospitals, wellness centers, and ALFs. Investors buy shares in healthcare REITs to earn dividends generated by the REIT-owned property. Evaluating the benefits and risks of investing in healthcare REITs, specifically, those in charge of elderly care facilities such as ALFs, is an important step for investors.

Investors with little to no experience in medical care management can bypass this obstacle by investing in REITs. By investing in REITs, investors can reap financial benefits without active involvement in the leasing or operational procedures.

Investing in healthcare REITs is a particularly low-risk but high-reward opportunity. Due to the rise in demand, investing in ALFs is not a risky choice because reliable statistics show that the industry is booming. Along with ALFs, senior housing facilities and nursing homes constitute the bulk of REIT-owned healthcare properties. For example, the three largest healthcare REITs - Welltower, HCP, and Ventas - specialize in senior housing. Their total market capital exceeds 65 billion dollars.

Additionally, REIT-owned medical facilities amount to less than 15 percent of all healthcare properties in the United States. Therefore, healthcare REITs are still in their early stages, allowing for market growth over the next decades.

In economic recessions, health care is among the most resilient industries, making REIT investments low-risk opportunities. Regardless of the state of the economy, healthcare facilities will continue to operate because demand for medical care is unaffected by financial fluctuations.

Another advantage of investing in healthcare REITs is their leasing terms. Typically, leasing a REIT-owned property is a long-term commitment that spans 10 years or more. Clinics, doctor’s offices, and ALFs do not change locations easily, so this long-term leasing opportunity is a stable, reliable source of income.

However, investing in healthcare REITs is not completely risk-free. An increase in interest rates can lower REIT stock prices, threatening the security of investments. Another potential risk is oversupply. Despite the high demand for elder care services, a matching supply increase can create an oversupply. Fast ALF construction that meets and exceeds the demand may result in vacant ALFs that yield no returns.

CSW Social Justice in Curriculum

Located in Weston, Massachusetts, the Cambridge School of Weston (CSW) is a day and boarding school for high school students. With a mission of providing a progressive education, CSW strives to incorporate in-depth academic learning, meaningful relationships, and opportunities for personal discovery in one educational institution.

Unique in many ways, CSW stands out as the first independent school in the United States to include social justice in its graduation requirements. CSW points to this requirement as evidence of its institutional commitment to integrating a global perspective and sense of social responsibility into its curriculum. The social justice requirement aims to challenge students to engage in meaningful action. To this end, students are encouraged to explore multiple perspectives on social issues and various models of social change.

Under the social justice requirement, students must complete at least 10 classes that reflect the diversity and complexity of the modern world in order to qualify for graduation. With more than 80 approved courses, CSW gives students a wide range of choices to fulfill the requirement. The approved courses span all of the school’s departments and include topics such as “African Epics from the Oral Tradition,” “Cultural Studies in Dance,” “Discovering India,” “Latinx Literature,” “Social and Political Theatre,” and “Topics in Jazz History,” among others. While many of the classes in the social justice requirement incorporate a global perspective, others concentrate on understanding the complex and often inequitable history of the United States, with class topics such as “US Native Americans” and “US Jailhouse Nation: History of Crime, Punishment, and Mass Incarceration.”

All of the courses approved for the social justice graduation requirement meet three core criteria. First, the courses examine historical and contemporary issues from the perspectives of historically oppressed groups, such as people of color and other marginalized people. Second, the courses invite students to reflect on societal structures of power and privilege, how they came to be, and their current effects on society. Lastly, the courses teach students about models for social change through the lens of advancing human rights.

In addition to the curriculum offerings, CSW holds an annual event called Michael H. Feldman Social Justice Day. Established in 1975 in memory of Michael Feldman, a member of the class of 1967, the event serves as a permanent memorial to a CSW alumnus who was known for being socially conscious and highly motivated to achieve social justice. Each year, Social Justice Day welcomes thought-provoking guest speakers and invites students to explore varying perspectives on current social and legal issues through debate and discussion.

CSW students take an active role in selecting the focus of the event, preparing informational materials, and educating the wider CSW community about the year’s chosen topic. Past Michael H. Feldman Social Justice Days have highlighted topics such as unfair labor practices, water privatization, and the impact of consumerism.

CSW also offers students a variety of social justice-focused affinity groups, clubs, and organizations. After completing their education, CSW graduates have developed the critical thinking skills and empathy necessary to overcome cultural divides and join with their fellow humans to build a more just world.

St. Camillus Offers ADHC with Enriching

New ownership is coming to a well-known nursing care facility in central Massachusetts. In November 2020, a Northbridge property that serves as the site for St. Camillus Health Center was acquired by a Wellesley-based investor for close to $6 million. The investor also bought St. Camillus for an undisclosed sum.

Located at 447 Hill Street in Northbridge, St. Camillus is now under the management of limited liability corporation Bluepoint Management II. According to a message posted on St. Camillus’s website, management is not planning changes to bed capacity or services at this time.

Offering rehabilitation and long-term nursing care to seniors in Blackstone Valley for nearly 60 years, St. Camillus prides itself on providing personalized and compassionate service that prioritizes the well-being of people under its care. Staff members are assigned to care for the same group of residents each shift, ensuring continuity of care. Also determined to cultivate a positive and empowering culture at the facility, St. Camillus encourages its residents to be in control of their own waking and eating schedules. The staff also engages residents in planning activities and events for the day, adding to their sense of control.

In addition to its residential facility, St. Camillus offers a range of daytime care services at its Adult Day Health Center (ADHC). Designed for elders who desire regular support and interaction, but wish to continue living in their own homes, the ADHC is housed in Whitinsville’s historic Linwood Mill and overlooks the Mumford River.

Managed by a volunteer board of directors, the non-profit day center has a strong focus on quality of services. The daily schedule at the center includes meaningful activity and programming for participants, as well as attention to individual medical needs. Activities include strength training led by a fitness coordinator and other personalized offerings, such as the Music & Memory program.

A non-profit organization, Music & Memory helps enrich life and stimulate memory with digital music technology. Based on neuroscience research, Music & Memory uses specific songs and artists to comfort and stimulate the memories of seniors struggling with Alzheimer’s, dementia, and other cognitive or physical challenges. St. Camillus was able to achieve certification to use the Music & Memory program through a generous donation from ERA Key Realty Services in Northbridge. The program is free for participants, but there is a need for the community to donate gently used iPods, iTunes gift cards, and monetary donations to help fund the program and increase its reach.

In addition to enrichment activities, participants are served breakfast, lunch, and a snack. Trained staff also assist day center participants with daily living activities, including showering. Licensed nurses also are on staff to administer medication and help manage chronic disease. If a resident requires physical, occupational, or speech therapy, these services are available on site at ADHC.

Participants in the day program must meet certain criteria, and eligibility is determined through a free home visit by ADHC’s director. St. Camillus accepts a variety of payment options, including Medicaid, state-funded payments, and self-pay. For more information on the full range of nursing, rehabilitation, and adult day services offered, visit StCamillus.com.

New Hotel Designed for Young Travelers Opens in Jackson Hole, Wyoming

Joseph Cuzzupoli served as the chief executive officer of Summit Services in Massachusetts, a long-term health care provider that employed some 3,500 people. More recently, Joseph Cuzzupoli purchased the new Continuum Hotel in the skiing center of Jackson Hole, Wyoming. The 90-room hotel caters to the millennial and Generation Z cohorts and was featured in a 2019 list of new resort accommodations in Forbes magazine.

Well situated near the skier’s destination Teton Village, the Continuum features airy, casual, king-size rooms and lofts, some with kitchen fixtures and balconies. The pet-friendly hotel also offers amenities such as a fitness room, hot tub, and heated pool, as well as an on-site restaurant. Visitors can enjoy the grandeur of nearby Grand Teton and Yellowstone National Parks, or they can try the three ski slopes: Snow King, Grand Targhee, and the Jackson Hole Mountain Resort.

A short drive away is the town of Jackson, where the town square is famous for its four welcoming arches, each made from hundreds of elk antlers. In addition to galleries, restaurants, and shops, the area features the Million Dollar Cowboy Bar, familiar to Western movie fans. Every summer night at 6:15, enactors recreate an old-fashioned shootout. 

Continuum Hotel - Attracting Action Sports and Ski Enthusiasts

Joseph Cuzzupoli is a Massachusetts entrepreneur who pursues investment opportunities spanning the United States. With a background in health care, Joseph Cuzzupoli has invested in high profile hospitality ventures in destinations poised to experience growth as the US economy moves toward recovery. Among those properties he invested in through Vineyard Investment Group (the VI Group) is the Continuum Hotel in Jackson Hole, Wyoming.

Situated centrally in Teton Village at the base of Jackson Hole Mountain Resort and its aerial tram, Continuum is a 90-room property. After purchase, the hotel underwent a comprehensive renovation, by architects Prospect Studio and designers Powerstrip Studio, before reopening in late 2019. Offering a combination of outdoor adventure ambiance and luxury, the hotel represents a partnership with the action sports media producer Teton Gravity Research (TGR). In Continuum, it even bears the name of TGR’s first ever film.

This action sports aesthetic, targeted to the emerging Millennial/Gen Z demographic, is reflected in a lobby bar with large-scale wall projections and a balcony DJ. The guest experience is amplified by amenities such as an outdoor hot tub and heated pool. In November 2020, the long term prospects of the property as a premier winter sports lifestyle hub were enhanced through its addition to the managed portfolio of the Sage Hospitality Group.

 

Workforce Development Scholarships from MV Youth

Formerly the chief executive officer of Summit Services, investment professional Joseph Cuzzupoli led the firm to generate more than $80 million in annual revenue. Joseph Cuzzupoli holds a law degree from Boston College School of Law and remains involved in various community organization, serving as a founder and member of the board for MV Youth.

A charitable organization committed to supporting young people in Martha’s Vineyard, MV Youth distributes grants to groups engaged in effective, community-enhancing work. MY Youth also offers scholarships for high school students planning to attend college or pursue professional training. Workforce development scholarships are available to individuals aged 18 to 25 who wish to pursue technical careers in an areas such aviation, culinary arts, health care, horticulture, building, wind technology, and more, either on Martha’s Vineyard or elsewhere.

The scholarships, which are awarded based on a combination of merit and financial need, are sustained for the duration of the professional or technical training program. 

The Mariner - Gracious Senior Living in a New England Seaside Setting

After serving several years as the vice president of operations for Healthcare Services Group (HSG) in Philadelphia, Joseph Cuzzupoli founded Summit Services Group in 1991. He grew Summit into a major presence in the industry, ultimately selling it to HSG in 2007. Today he heads the VI Group, a private investment company that focuses on companies in healthcare as well as real estate. Joseph Cuzzupoli also sits on the boards of several healthcare companies, including Covenant Healthcare, Quality Rehabilitation, Summit Service Group, and The Mariner.

Situated on 4.5 acres in the heart of historical Marblehead, Massachusetts, The Mariner is a proposed senior living facility with three levels of accommodations:

- Memory care, designed for those with Alzheimer’s or dementia, offers the highest level of care in a safe and secure environment.

- Assisted living is for seniors whose cognitive skills aren’t impaired, but who need some help with some of the activities of daily living, including household management and personal care.

- Independent Living is for seniors who still have the full use of their mental and physical faculties, and who prefer to live in a maintenance-free environment.

The Mariner will provide a mix of studios, 1-bedroom, and 2-bedroom apartments with a total of 108 beds. It will offer its residents a broad range of amenities, including a full-service dining room as well as private dining, a cafe, lounge and theater, care and wellness facility, beauty salon, barber shop, and an activities center. Other services include a library and a brain gym.

Designed by a small group of area developers who value Marblehead’s unique charm and historical significance as a Massachusetts seaside community, The Mariner will reflect traditional area themes, including classic New England shingle design. More information about The Mariner is available online at MarinerLiving.com.