Matrix has a long history of investing in cash flowing real estate assets such as mobile homes, self-storage and single-tenant triple net lease. In 2017, we began exploring investment opportunities in seniors housing. Changes in demographics and economic conditions are expected to drive significant demand for senior care facilities, thus ensuring demand for debt and equity capital to facilitate growth. Healthcare spending is projected to grow at a faster rate than GDP over the next 10 years. Over the past 10 years, seniors housing has outperformed other real estate related investments.
We made a substantial commitment to a Fund managed by a nationally recognized leader in providing financial services to the health care and senior living space. The manager’s integrated investment banking, mortgage banking, balance sheet lending, and private equity operations enable it to seamlessly deliver multiple funding strategies to the full continuum of senior living, healthcare and affordable housing clients. The Fund provides capital for new development or acquisition of independent living, assisted living, memory care and skilled nursing facilities to high-quality operators. As capital is deployed, we project annual cash distributions of 9-12% with an overall internal rate of return of 15-20% over the life of the Fund.