New REIT Janus Living & Denver’s Senior Care
Major shifts are underway in the senior living investment landscape, with Healthpeak Properties spinning off its senior housing portfolio into a new, specialized real estate investment trust (REIT) called Janus Living. For Denver locals, this development could signal new opportunities and changes in the quality and availability of senior living options across our growing metro area.
Understanding the Shift: Healthpeak and Janus Living
Healthpeak Properties, a significant player in healthcare real estate, is making a strategic move to sharpen its focus. Historically, Healthpeak managed a diverse portfolio including medical offices, life science facilities, and senior housing. The creation of Janus Living represents a clear division: Healthpeak will now concentrate exclusively on medical office and life science properties, while Janus Living will take the reins of its extensive senior housing portfolio.
This spin-off involves 100 senior housing operating properties (SHOPs) that will now fall under the Janus Living umbrella. The decision reflects a broader industry trend towards specialization, allowing each entity to better target specific market needs and investor expectations. For Denver, a city with a rapidly growing senior population, this dedicated focus on senior housing could have tangible benefits.
What Janus Living Brings to the Table
Janus Living is designed to be a pure-play, publicly traded REIT focused entirely on private-pay senior housing. This means its entire business model will revolve around acquiring, managing, and investing in communities where residents pay directly for services, rather than through government programs like Medicare or Medicaid (though many residents may use long-term care insurance). This focus often translates to properties offering a wider range of amenities and services tailored to a more discerning market segment.
The new entity will be led by an experienced team, with John Starcher Jr. — known for his leadership at Trilogy Health Services — slated to be its CEO. A dedicated board of directors will also guide Janus, ensuring a focused approach to its portfolio. Importantly, Janus Living aims for a higher concentration of properties in “leading Sun Belt and high-growth markets.” Given Denver’s consistent population growth, strong economy, and increasing number of retirees, our city fits squarely into this target demographic.
Implications for Denver’s Senior Living Landscape
The formation of Janus Living and its specific mandate to invest in high-growth areas like the Sun Belt region has direct implications for Denver and the wider Colorado Front Range. Our metropolitan area has seen a significant increase in its senior population, creating both demand and opportunity in the senior living sector.
A new, well-capitalized REIT dedicated solely to private-pay senior housing could mean:
- Increased Investment: Janus Living may seek to acquire existing high-quality senior living communities in the Denver area or invest in the development of new facilities to expand its portfolio. This influx of capital could modernize aging properties and bring new, state-of-the-art options to the market.
- Enhanced Competition: More specialized players in the market can lead to increased competition among senior living providers. This competition often benefits consumers through improved services, more competitive pricing, and a wider array of choices for families seeking care for their loved ones.
- Focus on High-Quality Amenities: With a private-pay focus, Janus Living is likely to prioritize properties that offer premium amenities and services, such as robust wellness programs, diverse dining options, and engaging social activities. This could elevate the standard of senior living available locally.
- Job Creation: Investment in new facilities or significant upgrades to existing ones will inevitably create jobs in construction, healthcare, property management, and hospitality within the Denver metro area.
Comparing the Entities
To better understand the distinct focuses, here’s a brief comparison:
| Feature | Healthpeak Properties (Post Spin-off) | Janus Living |
|---|---|---|
| Primary Focus | Medical Office & Life Sciences | Private-Pay Senior Housing |
| Portfolio Size (Initial) | Retains current non-senior housing assets | ~100 Senior Housing Operating Properties (SHOPs) |
| Market Strategy | Specialized healthcare real estate | High-growth, Sun Belt senior markets (e.g., Denver) |
| Publicly Traded? | Yes | Yes (expected Q3 2024) |
What Denver Residents Should Watch Next
The spin-off is expected to be completed in Q3 2024, at which point Janus Living will officially begin its independent operations as a publicly traded company. For Denver residents and families considering senior living options, it will be important to observe how this new entity executes its growth strategy. Will they enter the Denver market aggressively? Will existing senior living communities be acquired or re-branded under the Janus Living name?
Keep an eye on local real estate news and announcements from senior living providers. Increased activity from a dedicated senior housing REIT like Janus Living could signal a dynamic period of growth and development for senior care services in our city, potentially offering more diverse and high-quality choices for Denver’s aging population.
Frequently Asked Questions
- What is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs typically allow individuals to invest in large-scale portfolios of real estate in the same way they invest in other industries, by buying shares. - How does this affect current senior living residents in Denver?
Initially, there may be no direct immediate impact. However, over time, increased investment and competition from entities like Janus Living could lead to facility upgrades, new amenities, and potentially more diverse service offerings across the market, benefiting residents. - Is Janus Living focused on affordable senior housing?
Janus Living is specifically focused on “private-pay senior housing,” which typically refers to communities where residents or their families bear the full cost, often implying a market-rate or luxury segment. It is generally not associated with government-subsidized affordable housing. - Could this mean new senior living facilities in Denver?
Potentially, yes. As Janus Living targets “high-growth markets,” and given Denver’s demographics, it’s reasonable to expect they may look to acquire existing properties or develop new senior living communities in the area to expand their portfolio.
Staying informed about these broader market shifts can help Denver families make better decisions when planning for or choosing senior living solutions, ensuring access to the best possible care and environments for our loved ones.
New REIT Janus Living Denver Senior Care
