Minnesota Building Boom

Construction of seniors housing communities seems to be speeding up in Minnesota, with a slew of groundbreakings announced in the last month. Two developments in the Minneapolis/St. Paul MSA will be managed by Ebenezer Management Services upon completion. The first, a 105-unit community with 80 independent/assisted living and 25 memory care units, is being developed by Oppidan Investment Company. The second is an 84-unit community (with 60 IL/AL and 24 MC units) which is being built at a cost of $16 million, or $190,500 per unit. That is about $27,000 less than the state average for seniors housing ($217,200 per unit), according to our database, which includes developments since late 2013. Two other developments broke ground in rural areas of the state, including an 80-unit senior living community in La Crescent with 11 IL, 25 AL and 44 MC units that cost $8.5 million, or $106,250 per unit, and a 92-unit community in Faribault to be operated by Oxford Management. We will continue to follow the Minnesota development market, since it seems to be picking up steam.