Senior Living Development News, March 27, 2014 - Caddis Partners: “Full speed ahead” on Heartis-branded communities, Village Pointe Commons moving forward in Wisconsin, Creating “silk purses” from “sow’s ears” in Indianapolis
March 27, 2014:
Your biweekly update on people, places, projects, plus...
This month, Caddis Partners began construction on its fifth and sixth Heartis-branded communities in Texas. Heartis Cypress and Heartis Clear Lake—both located in the Houston area and both 78-unit communities (54 assisted living units and 24 memory care beds)—are expected to open in early 2015.
Caddis, a Dallas-based real estate development, management, and investment firm operating strictly within the health-care sector, announced in June 2013 that it would invest $100 million in the senior living segment over 24 months. At that time, too, construction had just begun on Heartis Cleburne, a 96-unit assisted living and memory care community south of Fort Worth and the company’s first seniors community being developed under the company’s newly announced “Heartis” brand. One month later, construction began on Heartis Eagle Mountain in north Fort Worth, also a 96-unit assisted living and memory care community.
Development of Heartis Conroe, a 50-bed memory care community north of Houston, was underway before the official launch of the new brand; that community opened in late summer 2013. And in November 2013, construction began on Heartis Amarillo, an 89-unit community (54 assisted living units and 35 memory care beds).
Caddis continues to move “full speed ahead” to develop Heartis communities, as Executive Vice President and Partner Matt Maddox promised when the brand launched. The company expects to open a total of 10 or 12 Heartis communities (390 units) in select markets across Texas by summer 2015. So far, six projects are either open or already under construction.
Heartis communities are developed and owned by affiliates of Caddis Partners. Good Neighbor Care of Eugene, Oregon, provides management services........... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Tarantino & Co., the Waukesha, Wisconsin, real estate developer, plans to build a $20 million senior housing community in a commercial district on the south side of Grafton, Wisconsin. The 200-unit project, to be called Village Pointe Commons, will have levels of care, services, and amenities common to the senior communities that the developer already operates under its Capri Senior Communities banner.
An aging mall that once occupied the development site was razed in 2008 to be replaced by an extensive mixed-use project—a 17-building complex on 22 acres that included a new retail center and townhouse- and apartment-style condominiums. The retail center was finished before the full effects of the economic recession took hold, but the housing units were never built. That developer recently agreed to sell the land to Tarantino & Co, and the Grafton Community Development Authority and Village Board approved the land-use change to senior housing. Tarantino’s development plans will need further approval from the village before construction begins around April 2015.
Capri Communities, LLC—a member of the Tarantino family of companies—already manages more than 1,300 units in a dozen senior communities throughout southeastern Wisconsin, including Gables of Germantown, Wilson Commons of Milwaukee, and St. Catherine Commons of Kenosha........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Joe Whitsett, an Indianapolis native and prominent tax-credit real estate lawyer before founding TWG Development, LLC, has an affinity for historic buildings. Since 2007, TWG (originally The Whitsett Group) has been turning rundown buildings in and around the city from eyesores into attractive affordable housing for seniors and for families. The most recent example is a $9.6 million conversion of a four-story structure at 1352 N. Illinois Street—built in 1929 and formerly occupied by a commercial laundry—into 63 affordable seniors housing units. The project was awarded $836,756 in federal low-income housing tax credits (LIHTCs), as well as $450,000 in additional state funding.
LIHTCs, along with Whitsett’s particular expertise as a tax attorney, have helped TWG become a $30 million operation over the last six years. And using the equity built up from its 26 (so far) affordable housing projects, the company has begun to diversify into market-rate housing development; for example, a 79-unit redevelopment of the former American building in downtown Indianapolis (now called 333 Penn Apartments) opened on December 1, and a conversion of the former Indianapolis Star headquarters building into 500 market-rate housing units is in progress.
Affordable housing, however, will continue to be the company’s primary focus. LIHTCs are such a lucrative incentive for developers and have been so good for TWG over the last six years that Whitsett and his partners have no intention of giving that up. Diversifying their development business into market-rate housing—and perhaps into office and warehouse space—is simply a way to hedge their bets........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
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