Round Lake LLC (RL) buys, develops, operates, and holds a growing portfolio of Senior Living communities in Washington state. The company offers proven models and an experienced team that places investors in the center of one of the dominant national demographics of the next 30 years.
RL's core market belief is that the baby boom has explained every major US economic phenomenon since World War II. It drove the overwhelming success of Gerber Baby Foods and the Barbie Doll in the 1950s, the success of the Ford Mustang in the 1960s, the intense competition to get into the top schools in the 1970s, the housing boom and soaring sales of consumer durables in the 1980s, the ballooning 401ks and other retirement plans, and the soaring stock market of the 1990s. When this group began retiring in 2005, the travel industry exploded, and as they now reach 80 years of age, demand for retirement living in the Senior Living sector is already feeling immense pressure to grow. As a group, the Baby Boomers will inherit $10 trillion over the next ten years, and the march of the baby boom generation will quadruple the number of seniors demanding great locations and assisted living services that allow them to retain their healthy and active lifestyles.
Market timing is outstanding as the Senior Living industry consolidates in favor of experienced operators with proven operational practices. In past decades, contractors trying to exploit market trends built great facilities only to find they could not manage them. Smaller owners that have been in the industry for twenty years are selling properties to enjoy the wealth locked in equity. Public companies are selling projects to reduce exposure from outlier properties. Sophisticated market development will be a necessary component of a successful growth company as sites become more competitive to find and development costs rise. Round Lake comprises a robust team of professionals, including its superlative CarePartners Management Group LLC, which delivers great care in financially viable communities.
As the 21st century moves into its third decade, the depth of the demographic is delivering its financial impact. Demand is pushing current supply. Public companies are stabilizing and profits are increasing. The valuation of assisted living communities has risen consistently since the early 2000s, and the industry showed solid occupancy and profitability in the 2010s. Opportunistically, the demand curve for senior communities has only just begun as the leading age of the baby boomer generation is just now reaching the average age of current residents. The vast majority of the curve is still ahead.
Senior Living is coming of age as the Baby Boomers begin to explode the senior population from 38 million to 76 million. Round Lake provides an effective vehicle for investors to add the senior demographic to their portfolios at the ground level. Round Lake's history, experience, scale, and resources allow it to be of great service to this surging population, and to be the conduit for exceptional economic gains over the next 20 years through buying, building, and holding excellent properties in superb locations. I thank you for exploring Round Lake, and I invite you to contact me at any time with questions. Sincerely, Bill MooreManaging MemberRound Lake LLC