Joining us in conversation today is Adam Benton, Founder of Stellar Senior Living, a luxury retirement home with 4,000 beds and over 2,500 employees operating across nine US states. Tuning in, you’ll hear the origin story of Stellar Senior Living, including a breakdown of the lease model that facilitated their start. Discover the details of how the cap rate increases in proportion to need, and what the different types of senior living communities look like at Stellar. Adam shares what to look for as an investor new to the senior living space, and gives an overview of some of the drivers behind growth in the industry contributing to a promising future. He also offers advice on how to facilitate a positive dynamic in a family-run business, and provides an inside look at the process at Stellar Senior Living, from purchase to operation. Listeners will also have the opportunity to hear about a key challenge Adam faced and how he overcame it, before he shares his hopes for the future of innovation in his industry. Tune in today to hear all this and more!
Key Points From This Episode:
- An introduction to today’s guest, Stellar Senior Living Founder, Adam Benton.
- The origin story of Stellar Senior Living.
- How a lease model works and who it serves best.
- The different types of senior living communities at Stellar.
- How the cap rate increases in proportion to need from apartment to hospital.
- Other options to get into the senior living industry.
- An outline of the investment criteria for Stellar.
- The number one thing to look for if you are entering the industry.
- Why considering the team is such an important element of choosing where to invest.
- Why the demand calculation is so easy to do for senior living.
- Growth drivers for the industry including a longer lifespan and the number of baby boomers.
- Best practices that support harmony in a family-run business.
- A word of advice to get everything in writing even though you are working with family.
- The average hold time on a newly purchased property.
- Why it’s so important to make sure that you have an excellent operating team.
- A huge challenge that Adam experienced in Seattle.
- Innovation he would like to see in the senior living space in the future.
Links Mentioned in Today’s Episode: