Multifamily

By Jeff Shaw HOUSTON — Although the seniors housing industry as a whole suffered big setbacks throughout the COVID-19 pandemic, hitting record-low occupancy rates across the board, one sub-segment was an exception to the rule. “During COVID there were clear winners and losers in commercial real estate,” said Aron Will, vice chairman of debt and structured finance at CBRE and co-head of CBRE Senior Housing. “Industrial, life sciences, medical office and multifamily were very clear winners. But one asset class that’s been overlooked is active adult, as it was also a very clear winner.” Although there is much discussion around how to define the active adult segment, generally it’s an age-restricted apartment community for physically healthy seniors who don’t yet need the services in independent living such as meal preparation, cleaning or assistance with the activities of daily living. Without temporary government regulations stopping move-ins to active adult communities — plus a younger, healthier resident than in independent living or assisted living — active adult communities thrived during the pandemic. Lease renewal rates were 80 percent; collections were close to 100 percent and the segment experienced “phenomenal rent growth,” according to Will. Will’s comments came during a panel he moderated …