Few are talking about New England during this seniors housing development boom. In the Northeast, there are more barriers-to-entry, more existing product and more expensive land, in sharp contrast to a region like the Southwest where construction is fast leading to overdevelopment in some areas. But with a higher income population, an aging product and less competition for brand new communities, some developers have big plans in New England. According to our database, Epoch Senior Living has three “Bridges by EPOCH” communities under construction and set to open in summer 2015 in Connecticut. Benchmark Senior Living has been a consistent builder in New England, with two communities opening this year in Connecticut and New Hampshire. And Maplewood Senior Living, which already has eight properties in the region, has one more breaking ground in Connecticut early next year.
But Norwood, Massachusetts-based LCB Senior Living is developing big in New England. Started in 2010 by the management team of the former Newton Senior Living, which was one of the first assisted living developers and operators in Massachusetts, LCB currently operates 10 communities in four New England states. Plus, the developer has two communities in Connecticut, two in Massachusetts and two in New Hampshire opening in either 2015 or early 2016. All of the communities cost roughly $20 million to develop and follow a basic unit structure of 70-90 units per community, with about 20 units reserved for memory care and the remaining units available for either independent or assisted living. In fact, the IL/AL units are identical layouts, and IL and AL residents are interspersed in the same floors. When compared to the rest of the product in New England, LCB’s appears to be more high-end, costing on average $243,000 per unit and $279 per square foot compared to $225,000 per unit and $241 per square foot for all of New England, according to our database. LCB’s communities feature restaurant-like dining and utilize technology to improve residents’ communication with their families and with the staff.
For most of the projects, LCB has partnered with The Architectural Team for the design, and has employed several different contractors, including Congress Companies and CWC. To help fund these projects, LCB has several equity partners, including Berkshire Capital, Virtus Investment Partners and Prudential as well as debt partners such as PNC Bankand B&T Bank. The company plans to grow by acquisition as well, having bought two Vermont senior living communities with a total of 297 units in August of this year for $80 million. In that deal, Virtus Investment Partners provided $23 million in equity, while PNC Bank spotted the remaining $57 million in debt. LCB is also in the active permitting stage at three separate sites in Massachusetts. For now, the company is focused on serving New England where its high profile makes it easier to find and acquire sites. But, don’t be surprised to see LCB stay in its region for too long.
