Rising construction costs have stymied a number of senior living construction projects (much to the relief of thousands of operators looking to quickly recover their occupancies), but one development is still going ahead, albeit with a $3 million increase in financing. Evergreen Real Estate Group is building a 120-unit Medicaid assisted living community in Goshen, Indiana, which will feature 49 studio and 71 one-bedroom units, with Gardant Management Solutions serving as operator. Development costs were originally estimated to be $28 million, or $233,300 per unit. The plan was approved in late 2019, and the Goshen City Council approved the issuance of up to $22 million in tax-exempt multifamily housing revenue bonds to support the development.
The scope of the project never changed, but due to the rising construction costs, particularly for lumber, the developers requested an increase in their original bond issuance of an additional $3 million. The City Council approved the increase, and the project will continue, but this may not be the last we see of a developer asking for more money.
