Senior Living Development News, October 23, 2014 - Fast fill-up at a Los Angeles CCRC
October 23, 2014:
Your biweekly update on people, places, projects, plus...
When Los Angeles hasn’t seen a new CCRC in 20 years, either there is no demand for one, or the city is starving for one. Clearly with the new Fountainview at Gonda Westside, which presold 92% of its units with 10% deposits in less than nine months, there was a need. Outbidding several other developers, Los Angeles Jewish Home for the Aging (LAJHA) secured 2.5 acres in Playa Vista, a highly-desirable, master-planned community that had already pre-zoned this land for a senior living community. Numbering at 200 units (176 IL, 12 AL, 12 MC) and 460,000 square feet in six stories, this entrance-fee, not-for-profit CCRC sponsored by LAJHA is the first on the city’s wealthy Westside and the second CCRC for LAJHA, which is seeking to lessen its exposure to governmental reimbursements. The entrance fees are steep, anywhere from $450,000 up to $1.3 million (averaging $750,000) and 90% refundable contingent on resale and the resident moving off the campus, but the community sold quickly (probably a record pace). San Francisco-based Gensler designed the community, and the contractor is Pasadena, California-based CW Driver. To finance the new CCRC, LAJHA issued $144 million in tax-exempt bonds, secured by Cain Brothers with a fixed rate under 4% and insured by Cal-Mortgage............Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
As a developer, owner and operator, Watercrest Senior Living Group develops its communities with the intent of being in it for the long haul. Uniquely equipped with its own internal market development team, Watercrest uses higher-income thresholds than seen in many typical market studies (with even higher income thresholds to build memory care), and approaches each site by engaging in the local community to identify its specific needs. In the high-income, master-planned community of Lake Nona in Orlando, Florida, the age and income demographics combined with there being no assisted living competition within eight miles of the site suggested the need for a high-end community. So, Watercrest broke ground last month on its amenity-rich Watercrest of Lake Nona. The property, on just 2.89 acres, will provide 56 assisted living units and 24 units devoted to residents in need of memory care, and comes with a host of amenities that will make it feel like independent living. Watercrest and its equity partner Index International AB of Sweden financed the project with a construction loan from Community & Southern Bank. The company also has three other properties under development in Florida; an 89-unit (63 AL and 26 MC) community in Sebastian, a 60 unit all memory care community in Viera, and a 90-unit (66 AL and 24 MC) community in Jacksonville with its development partner Starling Senior Living, with several more properties in different stages of development across the country. With their equity backers and good reputation, expect to hear more from Watercrest Senior Living Group................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
When one thinks of overdevelopment in seniors housing, Omaha, Nebraska doesn’t typically come to mind right away. Nonetheless, the effects of the building boom in senior living communities may already be beginning to show in Nebraska’s largest city, with occupancy (we hear) weakening in certain parts of the city. NIC MAP also shows this trend, with penetration rates for independent living and assisted living (which often includes memory care units) at 5.3% and 8.2% respectively. According to NIC, construction for assisted living is also hot in that area, with new construction representing 13.6% of the current inventory in the area. Two Omaha-based developers have recently broken ground on senior living communities in the city: Heritage Communities, which currently has eight properties open in Nebraska, Iowa and Arizona, and Dial Retirement Communities, which currently has 10 communities open in Nebraska, Iowa and Kansas. Heritage has two properties under construction in the city: Heritage at Sterling Ridge (107 units, with 32 IL, 53 AL and 22 MC) costing $179,000 per unit and opening in March 2015, and Heritage at Legacy (121 units, with 52 IL, 46 AL and 23 MC) costing $175,000 per unit and opening in June 2015. To finance the construction of these properties, Heritage turned to Sioux Falls, South Dakota-based Great Western Bank for Sterling Ridge, and Spencer, Iowa-based Northwest Bank for Legacy. While Dial plans to open a $30 million senior living community in Fall 2015, to be named Aksarben Village (136 units with 49 IL, 60 AL and 27 MC). For Heritage, the potential building boom in the city doesn’t seem to have an effect on its Sterling Ridge community for the time being as the company has already pre-leased 100% of its independent living units, and a good chunk of its assisted living units. But, if occupancy is already showing signs of dropping in Omaha, where will we see it next?................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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