**Berkadia Podcast Explores the Rapid Growth of the Senior Living Sector**
A recent report by PricewaterhouseCoopers and the Urban Land Institute highlights senior housing—and data centers—as leading commercial real estate asset classes for both investment and development prospects. With the youngest Baby Boomers now in their early 60s, demographic momentum is fueling demand for senior living options. The sector also benefits from a constrained pipeline of new supply.
Nonetheless, thriving in senior housing requires a deep commitment and consistent effort, say industry leaders featured in a recent episode titled “Investing in the Future of Senior Living Communities” from *Inside the Deal, a CRE Podcast by Berkadia®*. Hosted by Berkadia EVP and Head of Production Ernie Katai, the episode brought together insights from Mike Wagner, President of the Leo Brown Group, and Dave Fasano, Managing Director at Berkadia Seniors Housing & Healthcare.
“In senior living, you’re taking care of people. You’re solving for loved ones,” said Wagner. “Beautiful buildings and cutting-edge technology are great, but if your food isn’t good, your staff isn’t engaged, and residents aren’t enjoying themselves, you won’t succeed in this business.”
Wagner, whose firm develops and operates senior living properties, noted that operators from hospitality and multifamily sectors have made attempts to enter the space. While some have adapted successfully, others encountered the realities of a 24/7/365 operation and exited the market.
Fasano added that the skills required in senior living are highly transferable. “If you can make it in senior living—whether in development, operations or brokerage—you can navigate virtually any other real estate sector,” he said.
Despite its operational demands, senior living continues to attract increasing investor interest. Fasano noted that in 2025, cap rates have trended downward while per-unit prices have risen dramatically. “It’s become highly competitive. Investors are focusing on finding the right operating partners,” he said.
During Q3, Fasano closed four senior living property sales across four different states, spanning both urban and rural areas. “Age doesn’t recognize geography,” he said.
Three of the four properties featured a “full continuum of care,” encompassing independent living, assisted living, and memory care. Fasano emphasized that this approach has become central to many investor strategies. “As residents age, they may begin in independent living, transition to assisted living as their needs increase, and eventually move to memory care if dementia becomes a concern. The goal is comprehensive care from the moment support is needed.”
One of the acquisitions lacked the full continuum, offering only assisted living and memory care. While not inherently flawed, Fasano explained that such properties attract a narrower pool of investors due to the absence of complete care options, which are increasingly viewed as essential.
Replays of the full podcast conversation featuring Ernie Katai, Dave Fasano, and Mike Wagner are available on Apple Podcasts, Spotify, Amazon Music, and iHeartPodcasts.
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*This article was originally featured on Connect CRE.*
