Senior Living Development News, February 13, 2014 - Spotlight on Stroud Development, Spotlight on Texas, Spotlight on Co-ops
February 13, 2014:
Your biweekly update on people, places, projects, plus...
To kick off our inaugural issue, we are putting the spotlight on one of the most active developers of 2013 in one of the most active states for senior housing development (see below). Stroud Development, an affiliate of Stroud Properties based in Dallas, centers most of its construction activity in the Lone Star State. With its development partner McFarlin Group, Stroud recently developed five Orchard Park assisted living and memory care facilities in Kyle, Katy, Odessa, Pearland, and Victory Lakes, Texas. Each project cost an estimated $14 million and was financed through local/regional banks and HUD 232 LEAN program loans. Since 1990, Stroud Development has developed 28 properties totaling 3,586 units.
In 2013, Stroud launched a new senior housing brand—Sonoma House Assisted Living and Alzheimer’s Care—outside of Carrollton, Texas. Based on his own father’s sedentary and lonely experience in senior care, Jim Stroud believes that seniors are “immeasurably happier and healthier” in more intimate, social and active environments; therefore, he decided to implement his own proven small-house strategy. Stroud’s activity in Texas reflects a strong trend of privately held companies wanting to build in the low-regulation, minimal-zoning state of Texas. Since early 2012, 24 of 147 developments (16.5%) by privately held companies that we tracked were constructed in Texas. Stroud Development is riding this wave of new development and is planning several more communities under its new brand..... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
For several reasons, Texas has become the most attractive state for private developers to build senior living communities. Zoning laws in Texas are more lax than in most states, making it easier—and usually less expensive—to build. The state is growing rapidly in population, claiming eight of the nation’s top 15 growing large cities in 2012, according to the Office of the Governor, Economic Development & Tourism fo the State of Texas. Caddis Partners, Thrive Senior Living, Galier, Tolso and French Design, Stroud Development, America Development, and Belmont Village Senior Living are major builders in the state, constructing more than 3,300 units based on recently revealed information.
One of the reasons for the interest in new development in the state may be the values that have been achieved recently in the acquisition market. Texas was never known as a high-priced state when it came to acquisitions, but in 2013 alone there were two sales of 100% independent living or independent living with assisted living and memory care that sold for $418,000 per unit and $387,000 per unit, respectively. In both cases, they were built in 2009 and were performing extremely well. Another community, built a year later, sold for $235,000 per unit, which is still significantly above the national market averages. In comparison, and this sale is quite different, a 30-year old community sold for just $58,000 per unit even though it had an occupancy rate above 90%. It’s always about location, and there are plenty of attractive and growing markets in Texas, which is why development keeps on going........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
A senior housing co-op recently broke ground in Oakland, California, the first of its kind in the Bay Area. Elder Village Development, a part of Alameda Elder Communities, is the developer of the $21 million project, which is being built on the site of a local restaurant that burned down in 2010. The 41-unit retirement community, appropriately named Phoenix Commons, is part of a larger objective by city officials to revitalize Oakland’s waterfront. Elder Village believes that Phoenix Commons’ design and co-op model will allow seniors to more easily interact but still maintain the privacy of living in their own home.
Each one- or two-room unit, ranging from 630 to 1,100 square feet, comes with a private kitchen and bathroom. Residents also enjoy large communal spaces—spacious kitchens, dining rooms, patios, and more—all overlooking the waterfront, along with a private dock. As part of the deal, Phoenix Commons co-op residents own a share of the building and are responsible for maintaining the property and gardens. Unit prices start at $350,000 and reach $560,000, with monthly homeowner association (HOA) fees expected to be about $450 a month. Along with those high prices, residents enjoy a sense of camaraderie and the benefit of ownership that is unique in the senior housing market.........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
We’d like to hear from you!
Please send your development news to us at:
To advertise in Senior Living Development News, contact us at:
NEW - The Senior Care Acquisition Report, 19th Edition - Preorder Today and Get the 2013 Edition FREE ($595 Value)!
Deals have been made. The 2014 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make into financial press. Take advantage of our limited 2-for-1 offer - Preorder The 2014 Senior Care Acquisition Report by February 28th and receive The 2013 Senior Care Acquisition Report FREE ($595 value)! Now that’s a deal! Go to http://www.levinassociates.com/landing/scar19order or call 800-248-1668 to preorder today.
TODAY: Interactive Webcast:
Continuing Care at Home: A Way To Broaden Your Reach
Thursday, February 13, 2014, 1:00 pm ET
Continuing Care at Home (CCaH), sometimes called LifeCare at Home, can be a powerful addition to a CCRC’s continuum and a revenue generator for the bottom line. Seniors pay a monthly fee for life care without having to give up the comfort of—or investment in—their own home. While this is a rapidly growing and cutting-edge program, there are pricing issues, levels of risk, and best operating practices to consider. Go to http://www.levinassociates.com/conferences/1402-online-conference or call 800-248-1668 to register.