OFA Group integrates blockchain technology for senior housing development and financing.

OFA Group, a leader in architecture and real estate innovation, has implemented a Digital Asset Strategy to enhance senior housing development and financing efficiency. The initiative leverages blockchain technology and tokenization to streamline transactions, reduce administrative friction, and improve liquidity. By integrating tokenized assets and smart contracts, OFA aims to open new investment pathways and facilitate faster, more secure, and transparent transactions for both institutional and individual participants in the senior housing sector.

Real estate investment trusts (REITs) are aggressively acquiring seniors housing assets, driven by a growing demand for senior living facilities and a slowdown in new supply. The aging population, expected to increase by nearly 60 percent by 2035, has fueled this demand, while high development costs have led to a slowdown in new projects [1].

Public REITs have been leading the charge in acquisitions over the past year. For instance, Toledo, Ohio-based Welltower (NYSE: WELL) invested $6.2 billion in seniors housing in the first quarter of 2025, surpassing its entire 2024 investment total of $6 billion [1]. Similarly, Chicago-based Ventas (NYSE: VTR) increased its acquisition guidance for 2025 to $1.5 billion, indicating a robust pipeline of deals [1].

Private real estate groups, while less active in this high-interest rate environment, are still showing interest in seniors housing. However, they tend to be more active sellers right now [1]. REITs, leveraging their liquidity and cost of capital advantage, are capitalizing on this opportunity. The total return for the healthcare REIT sector year-to-date as of July 9 was 10.4 percent, and 23.6 percent for the 12-month period [1].

REITs are focusing on acquiring assets below replacement cost, with a target of between 7 and 8 percent year-one yields and an unlevered internal rate of return (IRR) in the low-to-mid teens. For example, National Health Investors (NYSE: NHI) is buying assets at below replacement cost, with a target of $200,000 to $250,000 per unit [1].

The Digital Asset Strategy implemented by OFA Group, a leader in architecture and real estate innovation, aims to enhance senior housing development and financing efficiency. By leveraging blockchain technology and tokenization, OFA aims to streamline transactions, reduce administrative friction, and improve liquidity. This initiative opens new investment pathways and facilitates faster, more secure, and transparent transactions for both institutional and individual participants in the senior housing sector [2].

References:
[1] https://rebusinessonline.com/reits-in-hot-pursuit-of-seniors-housing-assets/
[2] URL not provided