Development, design strategies can allow for high-quality senior living on a budget. By Russ Garber, Andrew Piletz and Nicole Boyer Ninety-year-old Lee Wachtstatter has been in the news many times over the last few years, as reporters have covered her decision to avoid traditional senior living facilities and instead live permanently on a cruise ship after the death of her husband. There are a number of remarkable things about Ms. Wachstatter’s decision, but perhaps the most eye-opening is the fact that the cost of her seagoing lifestyle is, by many …
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Program development, site assessment among critical elements for project planning. By Frank R. Muraca, ARCH Consultants Site assessment and land due diligence are essential activities in the early stages of the development process. Just as a market demand study is critical to demonstrate the need for program development, site assessment is critical for project site planning. An appropriate amount of property evaluation may uncover important issues that significantly affect the development schedule and financial planning assumptions. The required breadth and depth of investigation varies depending on the scope of program …
What will the seniors housing resident of 2030 look like? Expect a more active, diverse senior By Brenda Bacon, President & CEO, Brandywine Living They will probably be more diverse, and likely to be listening to the Beach Boys and Marvin Gaye rather than big bands and Frank. They will have little interest in our structured activities and near-zero interest in anyone deciding what and when they will dine. You’ll run into them in the hallway on the way to the yoga studio, the pub or the indoor pool. They might restart …
HJ Sims finance veteran tries to get ahead of a shifting financial landscape. By Jeff Shaw A wide variety of factors are affecting the landscape of seniors housing finance, and they come from both within and outside the industry. Factors range from the Tax Cuts and Jobs Act signed into law by President Trump in 2017 to Medicare/Medicaid reimbursement changes in skilled nursing to affordability concerns for poor and middle-class seniors. Jeff Sands, managing principal and general counsel for Fairfield, Connecticut-based lender HJ Sims, has experienced a lot in his …
After years of boom-or-bust transaction levels in seniors housing, trading has settled into a rhythm. By Jeff Shaw Although it’s easy to look at year-over-year transaction volume in seniors housing and say “acquisitions are down,” 2018 was more a return to the average rather than a lull. When the feverish trade volume in 2011 to 2015 (peaking at over $25 billion in 2011) and the recession slowdown of 2008 to 2010 (bottoming out below $5 billion) are taken together, the last 11 years average approximately $14 billion per year in …
By welcoming the surrounding community, operators can offer a better amenity package at great value. By Lisa Stover, Presto Real Estate Services With the rapid increase in the number of senior housing communities opening nationwide, it is imperative to find a point of difference that will attract residents to your buildings. Unique in-house offerings are one way to look at creating a point of difference. But another, arguably more effective, way is to build a strong sense of community by connecting with the larger local community outside the walls of …
Despite rising land, labor and materials costs, construction firms are finding ways to stay on budget while maintaining quality. By Lynn Peisner Commercial real estate developers and builders active in seniors housing face the same problems squeezing other property sectors. Permitted land is more expensive and harder to find. The cost of capital is rising. Fewer skilled laborers are available. And materials costs are steadily increasing. Meanwhile, construction firms put in many hours on the job site to ensure projects are completed on time and on budget. The total cost …
The preferred investment strategy in today’s tumultuous seniors housing industry can vary greatly by investor type. By Jeff Shaw It would be a gross oversimplification to say that trading is trending down in the seniors housing industry. While the dollar volume of property and portfolio sales may have dipped, the sector is still bustling as new investors try to work their way in, and capital providers look for smart ways to spend their money in senior living. Heading into the final quarter of 2018, the industry was on pace for …
While the existing stock of skilled nursing facilities is mostly outdated, only a handful of investors and providers are putting up new buildings. By Jane Adler While the construction of new assisted living, memory care and to a lesser extent independent living projects has been on a tear over the last several years, another part of the seniors housing industry has lagged far behind. Groundbreakings are only occasional events for new skilled nursing projects even as the number of facilities declines and many of the remaining ones are functionally obsolete. …