Lifespace Communities Redeveloping Its Chicago-Area CCRC

A 247-unit CCRC in Downers Grove, Illinois (Chicago MSA) is in line for a massive $150 million redevelopment of its campus. In the first phase breaking ground this Fall, the owner, not-for-profit Lifespace Communities, Inc., will look to add 66 assisted living units, 28 memory care units and 102 skilled nursing suites, with private courtyards.

The initial project will cost an estimated $61 million, or $311,200 per unit. According to our in-house construction database, which tracks senior care developments dating back to 2013, CCRC expansion or new construction projects cost approximately $420,000 per unit, or more than $100,000 per unit over the cost of Phase I. But, when you add in the estimated cost of the second phase (including 150 independent living apartments plus a number of amenities) of $81 million, or $540,000 per unit, the total redevelopment cost of $433,500 per unit is more in-line with the national average.

One part of the redevelopment will be to replace a number of residents’ ranch-style housing with a new health center and could be relocated to the new five-story IL building, or 13 new IL villas. Despite the town of Downers Grove approving the project, a legal challenge from some of the affected residents may ensue. So, we will see if the project continues on schedule.

 

 

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