Seeing opportunity from the inevitable
flood of aging baby boomers, Wells Fargo has announced formation of a new
specialty business group focused on their housing and health. A new Senior Housing Finance group has been
established within the bank’s Commercial Real Estate Group to “provide a dedicated,
comprehensive suite of traditional banking and credit services for senior
housing developers, investors, and operators.”
Well Fargo estimates that the U.S.
population of those over the age of 65 will grow by 67 percent over the next 25
years, from 48 million today to approximately 80 million in 2040. Over 21 percent of seniors over the age of 75
reside in senior housing or care facilities today and the bank said that
percentage will continue to grow. The Department of Health and Human Services
estimates that nearly 70 percent of people who reach age 65 will ultimately
need some form of long-term care.