10/08/2026
Senior housing can offer compelling investment opportunities. It also comes with risks that need to be understood before an acquisition.
For Praxis, that includes four areas in particular:
Operator risk: If an operator fails or loses its ability to operate, the property could lose its only tenant.
Interest rate risk: Acquisition financing uses floating-rate bridge loans, creating exposure during the bridge period and HUD refinancing process.
Refinancing risk: HUD proceeds may not be sufficient to fully repay the bridge loan, potentially requiring additional equity.
Health-related risks: Nursing facilities can be particularly vulnerable during events such as pandemics.
Understanding these risks is part of the investment process. Praxis Capital evaluates operator quality, stress-tests returns, considers adverse market scenarios and evaluates multiple exit strategies as part of its approach to healthcare real estate.
The goal is to understand both the opportunity and what could affect it.