We follow a Diligent Path to Building a Legacy Portfolio of Quality Real Estate Investment Assets
With a population of 323 million and rising, along with a Real Estate Market valued at over $40 trillion, it’s hard to ignore the significant opportunity that investing in U.S. Real Estate has to offer.
A distinguishing feature of Magna's deliberate strategy is to provide intentionally diversified investment opportunities, both across carefully considered asset classes and geographies. Through this, and the benefit of the culmination of academia, insights, research, data analytics, investment history and the good and bad experiences in between, we differentiate Magna through our uniquely diversified Magna Blended Portfolio real estate investment strategy.
Following years of hard work, diligence and building tested and trusted relationships with strategic alliance partners, Magna today has an irreplaceable platform and business focusing on the following key real estate asset classes primarily across the Sun Belt areas of the United States:
Housing (Senior Housing & MultiFamily)
Land
Industrial
Opportunistic RE
Given a world of market volatility, the impact on the state of the senior housing industry is often extremely topical in the context of the growing housing needs by the baby boomer population. In the most recent recession, senior housing was the most resilient asset real estate asset class seeing minimal drops in occupancy and rates. While the current economic downturn is due to very different circumstances and we are still early in fully understanding all of the implications, initial indications are positive for the senior housing sector:
Senior housing is still predominately a need based product. While overall inquires for move-ins have decreased, the inquiries received have been serious and seeking a quick move.
In most cases across the industry, occupancy has remained flat or increased. Compared to other asset classes, senior housing seems to be ‘weathering the storm’ extremely well.
There are still seniors that do not ‘need’ our product and see the move as a lifestyle choice. Many of these individuals are simply deferring the move. Instead of doing so now, they will do so in 2-3 months (when they expect the worst of COVID-19 to be behind us). As such, we are expecting some pent up demand in the near future.
The risk of non-payment due to COVID-19 issues is much smaller than other asset classes. Most seniors are living off of a steady, fixed income that would not be impacted by COVID-19 (for example, they are not at risk of losing a job which is needed to pay rent). Of course, some seniors rely on family members to assist with rent. However, due to the average cost, a certain income/wealth level is needed. These tend to be families less susceptible to economic fluctuations.
Health and safety is expected to be more important than ever for senior citizens in choosing a place to live. As such, strong operators may separate themselves from many of the mom & pop owners that were less prepared for the current health crisis.
While many of the short term implications are still playing out, thus far, the senior housing sector seems to be quite resilient to a downturn. Moreover, the long term demographic trends for the senior housing industry remain extremely attractive. As such, we are still actively pursuing deals. While many sit on the sidelines awaiting further insight, we believe there are some attractive risk-adjusted opportunities in the market today. One such opportunity is attached. If you have any interest in this opportunity, we are scheduling calls to discuss this specific opportunity and answer your questions. If you would like to wait and see how the market and economy trends over the next few weeks, please let us know as well and we will keep you in mind for future opportunities.
Not all opportunities are created equal. We adopt a disciplined, diligent approach to identify opportunities through a defined Magna Methodology. Only qualifying opportunities that exceed targeted risk adjusted hurdle rates are presented to our partners. Our Real Estate investments are a proud reflection of our dedication to ensuring that we build a sustainable, proud legacy, together.
Accountability, Transparency and Trust are central to ensuring that our Real Estate assets are housed within robust investment entities in which investors interests are clear and protected with appropriate independent participation by reputable legal and financial professionals.
