A CCRC in Overland Park, Kansas is planning a large expansion to its independent living services. Perhaps they read Marcus & Millichap’s National Seniors Housing Report, which reported average IL occupancy steady at 91.7% in 2016, and predicted it will rise 10 basis points in 2017. That is close to the census peak in 2008, when IL communities averaged 92% occupancy, before the Great Recession reared its ugly head. The Overland Park’s IL census is very strong too, at 98%, which prompted the 76-unit expansion effort. Built in 2000, the community already features 64 IL villas, 54 assisted living units, 52 skilled nursing units and 36 memory care units. Census was in fact strong all around, at 94%, so the scope of the expansion grew to include 48 new memory care units, to replace the existing 36 MC units. The owner will also relocate and enhance the therapy/rehab gym. All of this construction is expected to begin in early 2018, and a future phase may include a new stand-alone IL building and underground parking. Development cost is estimated to be between $65 and $70 million, or approximately $525,000 per unit on the low side. To fund the predevelopment costs, HJ Sims provided $6.285 million in tax-exempt bonds, which will be repaid from initial entrance fees from the IL units and capital campaign receipts. The bonds have a five-year maturity and can be extended to April 15, 2028 in the event of the unforeseen project delays.
HJ Sims Hits It Out Of Overland Park
