Senior Living Development News, January 8, 2015 - Opportunistic Texas developers growing in-state and out
January 8, 2015:
Your biweekly update on people, places, projects, plus...
Opportunistic Texas developers growing in-state and out
Civitas Senior Living is flexible when it comes to its growth. With the right deal and the right partner, the company develops assisted living/memory care communities with the intent of owning and operating them outright, co-owning with a development partner or being brought in as a third-party manager with a smaller ownership stake. They’ll build independent living where it’s needed too. With three properties open, and two of them stabilized in Winnsboro (East Texas) and Mesquite (Dallas MSA) with 94% occupancy, Civitas has five communities under construction, with two set to open in March 2015 in Midlothian (North Texas) and Austin, two in June 2015 in Flower Mound and Allen (both Dallas MSA), and one late in the year in Burleson (Fort Worth MSA). Plus, the company plans to open at least three more in 2016, in Dripping Springs (Austin MSA), Fort Worth and one in Colorado.
Working with local and regional banks to cover 70%-80% of construction costs and equity sources covering the rest, Civitas also works with its development partners to bring in other financing sources. If all goes well, the company will have at least 15 communities open by the end of 2016, and it is looking for both development and acquisition opportunities outside Texas. Aware of the increased seniors housing development in Texas, Wayne Powell, President and CEO of Civitas, believes that being based in Fort Worth means that their local operations and knowledge of the communities better helps them assess local demand and choose their building sites more carefully. With the first communities well occupied, and the newest filling up or pre-leasing at a brisk pace, their model seems to be working. It will be interesting to see how all these new communities in the Dallas/Fort Worth MSA fill up in the next year.....................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Seniors housing growing rapidly in Tulsa
Wichita, Kansas-based Oxford Senior Living, which has four assisted living/memory care communities open in Texas (2) and Kansas (2), is entering the Oklahoma market, having recently purchased land in Oswasso (Tulsa MSA) to build a 36-unit memory care community for $6 million, or $166,700 per unit, which is about average for memory care in the state according to our data. Oxford found a partner in CarrBaierCrandall Real Estate Group, based in Kansas City, Missouri, to help finance the project, which is expected to be completed in August 2015. Tulsa-based ECO Enterprises Inc. is the general contractor, while Wichita-based LK Architecture was brought in as the architect. The Tulsa area has several other projects underway. Oklahoma City-based Carland Group is building a 72-unit senior living community (16 IL units, 31 AL units, 25 MC units) in a suburb of Tulsa for $9 million, or $125,000 per unit, that will open late in 2015. A partnership between Avenida Senior Living and Black Oak Partners broke ground in September 2014 on a 140-unit IL community that will cost $18 million, or $128,600 per unit. Finally, for an undisclosed cost, Covenant Retirement Communities is developing a 79-unit independent and assisted living community in a suburb of Tulsa, with 45 IL units and 34 AL units, which broke ground in June 2014 and is scheduled to open in the summer of 2015.....................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
The Village at Orchard Ridge gets bond financing
The Village at Orchard Ridge, a National Lutheran Community in Winchester, Virginia, is a CCRC that is ready to undergo Phase II of construction with the help of a $67.8 million tax-exempt bond issue. Phase I, which opened in 2013, featured 51 IL cottages, 127 AL units, 18 AL/MC units and 10 private skilled nursing units. With Phase I’s success, National Lutheran Communities & Services (NLCS) is ready to start construction on Phase II this month, which will include an additional 104 IL units, 10 private SN suites, a 15,000 square foot wellness center with an indoor pool and a 150-seat dining expansion. The financing, which will also partially fund 18 IL cottages set to open this month, was arranged through NLCS’s partnerships with New York City-based Hamlin Capital Management and Charlotte, North Carolina-based Crosspoint Capital, and featured four, tax-exempt bonds with a blend of variable and fixed rates. Construction on Phase II should be completed in 2016......................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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