In this episode, we're chatting with Andrés Störmann and Alex Koczor, the duo behind the Smart Senior Living joint venture. They're experts in real estate development, healthcare properties, and turning distressed assets into thriving spaces. Tune in as we dive into their creative approach to converting empty office buildings into smart, community-focused senior housing across Germany. Follow along with our Senior Living Deep Dive series and check out the detailed breakdown at https://thesavvycapital.com
(00:58) - Andrés Störmann: Handles business development and capital market strategy within Smart Senior Living JV, integrating real estate, M&A, and insurance experience.
(01:34) - Alex: Focuses on operational execution, leveraging expertise in repositioning stranded real estate assets and healthcare real estate management.
(02:51) - Andrés: Origin of Smart Senior Living JV due to demographic aging in Germany, rising office vacancies, and shifting post-COVID office-space usage patterns.
(05:12) - Alex: Highlights Germany's demographic challenge (1 in 3 Germans aged 60+ within 10 years), shifting demand from expensive nursing homes towards affordable, independent senior living alternatives.
(07:11) - Alex: Office vacancy surge (7-11%+) across major German cities, with vacancies expected to increase sharply as leases expire; rising apartment rents (~60% increase in 8 years) exacerbate affordable housing crisis.
(08:41) - Alex: Strategic focus on repurposing centrally located vacant office buildings into smart, accessible senior living communities.
(12:02) - Alex: Favorable regulatory developments in Berlin easing office-to-residential conversions, including simplified permitting and beneficial public financing conditions.
(14:46) - Andrés/Alex: Screening approach prioritizing asset quality based on location, zoning feasibility, and structural adaptability; zoning changes avoided due to multi-year regulatory complexity.
(19:46) - Andrés: Defines "smart living" as digitally enabled, hospitality-oriented co-living targeting active, independent seniors (60-80 years), contrasting traditional nursing care models.
(25:12) - Andrés/Alex: Minimal operational vertical integration; community management coordinates externally booked services (food, healthcare, laundry) to maintain lean cost structure.
(27:48) - Andrés: Deal origination through direct relationships with property owners, asset managers, operating companies, and local chambers of commerce to address regional economic challenges and vacancies.
(32:20) - Alex: Highlights data acquisition challenges; robust market data available for major German cities, with gaps present for smaller municipalities, potentially complicating later-stage expansion.