Our Valued Services

What we Offer

What we Do

Permanence Partners aims to build, own, and operate vibrant senior housing communities at a reasonable price to residents.

How we do it

Unlike most senior housing , we will vertically integrate development and operations, and drive value to our shareholders, employees, and residents.

We're unique

Through long-term ownership of the real estate and the health care operations, we align incentives across to our stakeholders

Long term value

“Permanence Partners,” reflects our vision of creating communities our residents and employees can rely on.

Our Investors

With our unique approach we build capital appreciation for our investors over the long haul.

Our opportunity

Permanence Partners is a nationwide “search to start” in the senior housing sector

Investment Opportunity Overview

A “Search to Start” in Senior Housing

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Three Organizational Pillars

Who are we and why do we do what we do? Our organization will have three pillars: Identity, Execution, and Affordability.

Story

Every individual has a story to tell. In our communities, the story continues. A community is a family. We get to know each of our residents and they get to know each other, we help them record their life histories with their families, and we highlight that story every day.

Execution

Without rigorous execution, this complex business falls apart. We will adhere to the mantra: do what you say you’re going to do.

Affordability

The middle market has been underserved by senior housing. We want to always ask: is there a more affordable option?

 

 

Senior housing industry overview

Large market with attractive demographic trends Strong M&A interest with low cap rates

~$400B+5

TAM*

1.4M+

Senior Housing Residents*

~6.8%

Avg cap rates**

$5.7B

In transactions in 2018***

Some of Our skills

Tailwind trends: silver tsunami is imminent

• There are ~76 million baby boomers today
• In 2021, Baby Boomers begin turning 75
Life expectancy of people aged 65 is an additional 20.4 years
• The number of age 82-86 Americans will increase by 4.3% per year from 2021-2025 and by 5.3% per year from 2026-2030*
Anticipated shortage of one million senior housing beds by mid-late 2020s**



Baby Boomer 75+ Population vs Total 75+ Population 2020-2060 (in Millions)

TOTAL POPULATION
                       28%                                                        40%                                                          46%                                                       47%                                                        49%            

2020

2030

2040

2050

2060

We are leaning towards assisted living and memory care

Acuity segment

Independent Living

Geared towards seniors who do not need assistance w/ activities of daily living (ADLs)

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Assisted Living

Most residents move needing ADL help and have a need for driven absorption

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Memory Care

Residents suffering from dementia have unique needs and could be diagnosed with Alzheimers

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Skilled Nursing

Highest acuity residents, w/ extensive medical needs have low cyclicality

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Passionate about perfection

The Team

Richard

Jonathan Schatz

CEO

Jonathan Schatz has a JD-MBA from Stanford and a bachelor’s degree from Duke, and he spent the last three years as a search fund investor at Pacific Lake Partners. Prior to graduate school, Jonathan worked in financial services in Shanghai and as a Peace Corps Volunteer in Ghana.

Richard

Ken Kirkham

Co-Founder

Ken Kirkham is the former COO and CFO of Carillon Assisted Living, which successfully built and operated over 20 communities during Ken’s tenure. Ken is a Certified Public Accountant. He received both his bachelor’s and master’s degrees from Pace University.

Richard

 

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Benefits and Risks

Stay always updated

Timeline: staging financing to mitigate risk

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The opportunity thesis

Senior housing is a hyper-local business
• Regional operators have higher occupancy than national operators like Brookdale
• REITs increasingly are acquiring regional operators due to superior performance

The space is hot from an investment standpoint
• REITs and large private equity firms are struggling to find yield in acquired properties yet have significant dry powder to invest
• Cap rates average 6.8%, but we are seeing cap rates creep to 5%, which is a multi-family cap rate.

Debt is readily available for construction projects and recapitalization
• 60% loan to value for construction loans
• Facilities can be recapitalized at 80+% loan to value ratios at stabilization
• 4.5-5% interest rates

A good operator can maintain 30-45% unit-level EBITDA margins
• Value is created by quality operations
• Unlike other real estate, the amount of capex investment does not make a property successful
• Less cyclical than other real estate assets

 

Contact Jonathan Schatz

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Phone: (650) 799-0248

Email: jtschatz@gmail.com

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