Looking back
Watermark, like pretty much everyone in senior housing and the broader commercial real estate world, has seen a significant slowdown in new development (which, frankly, has benefited our existing portfolio). While we have several communities scheduled to open in 2024, it has been next to impossible to kick off a new development since the start of 2023 due to high construction costs, increased interest rates, and the general capital market dynamics.
Looking to the future
Watermark, in partnership with Keppel Capital, is uniquely positioned to develop higher-end IL, AL, and MC projects in the future and has numerous irons in the fire in order to be ready when market conditions improve, with an eye to 2025 being an important year for both Watermark and the senior housing industry. As it stands, our pipeline has grown to nearly $2.25 billion of potential developments across more than 15 projects and multiple states. These projects largely comprise higher-end 200+ unit IL/AL/MC and 100+ unit AL/MC projects. Watermark is enthusiastic about the prospects of these projects in light of the aging demographic that is now hitting our target market; the buyer preferences of the baby boomer generation (and how that aligns with Watermark’s Élan Collection); and the lack of new supply delivered in recent years due to the pandemic, construction costs, interest rates, and the broader capital markets. The future is bright for Watermark, Keppel, and the broader senior housing industry!
Contact
