BusinessTN

Approximately 7,000 people turn 65 years of age every day in the United States. Such numbers are music to the ears of Greg Vital.

Vital, 53, is president and CEO of Chattanooga-based Independent Health Care Properties, a specialized real estate developer, owner and operator of senior health care related real estate in secondary markets in the Southeast. Vital formed the company 13 years ago after serving a decade as a top executive with LifeCare Centers of America, the Bradley County-based nursing care chain that is among the state's largest private companies. (To this day, Vital maintains a good relationship with LifeCare founder Forrest Preston—and, in fact, Preston recently bought two sites on one of Vital’s campuses.)

Vital was originally a developer of assisted living facilities that he owned and leased to management companies unrelated to him. In that incarnation, IHP developed 13 facilities (between 1996 and 2000) that were eventually bought by a public company. After those sales, Vital began once again developing and acquiring senior housing assets for himself. But he also formed his own affiliated managing company called Morning Pointe, a chain that now includes 16 facilities in five southern states.

In all, it's a good industry to be in given America's aging population.

"There's no market that's immune to people getting older," Vital says. "Despite the economic climate today, I haven't picked up a newspaper or magazine yet that said people haven't continued to get older."

Other factors fueling growth are the relative health of today's older population. Many older people want to stay in smaller, so-called "quality-of-life communities" that are closer to home.

In addition, they want more options and choices and often have the financial wherewithal to afford them.

"The demographics of our industry are continuing to grow as people live longer and stay healthier through the use of modern pharmaceuticals and an increased focus on health and wellness," Vital says. "Also, independence is one of the things seniors want to stress in their aging process. They may be dependent on certain services, home health or living in an institutional environment like assisted living, but they still want their independence — they want to live in their own apartment, control their own finances and not be dependent on their adult children or families."

No one trick pony, Vital has over the years diversified his real estate portfolio to include several antiquities in the Chattanooga market, ranging from the well-known Dome building downtown to the Customs House.

"I have leases with the U.S. Postal Service, the state of Tennessee — stuff that just fell into place when I saw opportunities," he says. "But I'm mainly a senior care real estate developer."(Assisted living and Alzheimer’s care comprises about 70% of Vital's focus and total real estate scope.)

What's next for Vital? An energy guy with a strong marketing background, he's continuing to look at markets where there is a competitive need for what he provides. He recently opened a facility in Lenoir City and has plans to open another in Hickman later this year.

"I'm looking for calculated growth opportunities," Vital says. "Anywhere there is a void in the market for quality, high-end service models for senior care real estate."

Given Tennessee's centralized location on the East Coast, as well as its good weather, advantageous tax structure and quality of life, the prospects for Vital's well-chosen niche seem promising.