SAN FRANCISCO: Retirement and medical real estate has emerged as one of the hottest property types of the year for investors, with REITs, hospitals and providers pumping billions of dollars into the space in a scramble to expand and acquire the specialized space, driven by the aging population and expanded health care options.
Some analysts, however, are concerned that certain investors may end up in traction. While the most recent acquisitions highlight the segment’s continued rapid growth, Fitch Ratings has issued a report raising questions about the risk that a growing pool of buyers from all ends of the investment spectrum may end up overpaying for properties, pursue higher-yield, higher-risk assets, or go into debt to maintain the frenzied growth pace that investors have come to expect from the sector…