Market Repositioning

workoutsThe seniors housing industry is entering a new business phase. Because of limited development in the last five years, demand is clearly ahead of supply even in strong and previously over-built markets. However, this does not mean that profits are now easy to come by. Typically, unit absorption has proceeded at a slower than predicted rate. Owners have failed to appreciate the fact that marketing to seniors is a unique science different from general real estate, and that services, meals and amenities are the keys to success in senior housing. Skillful budgeting, staff recruitment and training are critical as in any service business. To meet these needs, investors are seeking turn-around managers to infuse new life into under-performing properties and provide a recovery plan that both owners and lenders can understand and implement.

MJM Associates specializes in helping existing owners or new owners recover the value in human service companies that have been mismanaged or are under capitalized. Workouts begin with a reevaluation of a project’s market, repositioning and repricing of the products selected and development of a new financial plan. Debt is restructured or refinanced as necessary. Once approved by the owner and lender, management staff is evaluated, replaced or re-trained as necessary and a new marketing plan and operating procedures implemented.

When appropriate, MJMAssociates through its affiliated real estate division, the Sanmar Group, will acquire distressed assets. Alternatively we will work with existing owners and can completely replace a facility’s operating procedures or refine those in place. We can assume full responsibility for management or monitor the current management’s performance until defined performance goals are reached.