Seniors Housing Weekly Update - One Condo Retirement Community Is Making A Comeback

September 23, 2013

 
September 24, 2013. 60 Seconds with Steve Monroe. Some developers had high hopes for condo retirement communities, but then the Great Recession hit and it has taken time to heal.

One Condo Retirement Community Is Making A Comeback

Remember when retirement condos were thought to be the answer to the hesitancy of some seniors to putting down significant entrance fees in CCRCs? Sunrise Senior Living had the misfortune of opening a high-end condo community in Bethesda, Maryland called Fox Hill in October 2008, about the worst timing ever, and they were able to sell just 75 of the 265 units during the next three years. After the debt was restructured, they resumed the sales process five months ago. The results to date? They have closed 12 sales, have three under contract and deposits for an additional 16 units, and more than 80% of deposits have turned into sales. That’s not too bad considering the prices range from $400,000 for a one-bedroom unit to $1.2 million for a three-bedroom with a den. The monthly service fee ranges from $3,000 to $4,800. The larger units are the most popular, but this makes sense for this income cohort. It turns out some seniors still like the idea of home ownership, even at the young age of 82.

 

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