Where does Mainstreet go next? The developer of post-acute/assisted living facilities has already developed 19 facilities in Indiana since 2009, with five more coming in the next year. It has also constructed one facility each in Illinois and Colorado. Not much for geographical diversity. However, that will soon change, helped in large part by the company’s planned five-year, $5 billion development pipeline. One state where Mainstreet already has shovels in the ground is Kansas. For three of the projects, in Kansas City, Overland Park and Olathe, Mainstreet partnered with The Ensign Group to develop the facilities. And Mainstreet just last week broke ground on the fourth project, a 94-bed, $16 million (or $170,200 per unit) skilled nursing/assisted living facility in Topeka. Interestingly, according to our data for construction projects that have broken ground since 2013, the average cost per unit in Kansas for assisted living and skilled nursing is $170,400, roughly the cost of the Topeka project (at approximately $170,200 per unit). Mainstreet clearly did their research on that end, but can the Topeka market take another 94 beds? We will see.
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