New construction in the senior care industry dropped during the pandemic for a variety of reasons, but we may be in the midst of a construction boom for active adult communities. We are reminded of 2014, when our inbox was starting to fill with many developers announcing their latest assisted living/memory care community groundbreakings. Not only that, investors and operators started to launch new development pipelines (some a little too ambitious), touting the unstoppable force of “demographics.” Eight years later, we are much closer to the baby boomers aging into seniors housing, and most of the new construction announcements have been in the lower-acuity, low-service active adult sector. So, we are at the tip of the iceberg of an active new construction market.
Avenue Development, a senior living and healthcare developer, announced the launch of its new active adult company, Viva Bene, which means “living well” in Italian. The first project is set to break ground this summer in St. Peters, Missouri, a suburb of St. Louis. It will include 161 units with a gathering space, co-working areas, outdoor amenities and a wellness hub with fitness, yoga/meditation and healthcare consultation.
That wellness focus is where Avenue seeks to distinguish itself in the active adult sector. Take this quote from the launch announcement: “The mission of Viva Bene is rooted in the origination of value-based care, to improve health outcomes and reduce healthcare costs for residents through the seamless integration of an active lifestyle, tech-driven preventative healthcare access, wellness programming and active community engagement.” Avenue Development also has experience developing primary care clinics and will provide primary care providers partnership opportunities in both mobile care models and co-locating clinics within the Viva Bene community. This seems like a good addition for residents, who can access basic care conveniently on their campus, and for healthcare providers, which can provide preventative care and better manage the senior population’s health.
Adding these services can also help keep residents at the community longer as they age, which bodes well for Viva Bene but also potentially shortens lengths of stay at independent living or assisted living communities. With rents stating at $1,500 per month for one-bedroom units, these communities also can provide a middle market solution for seniors looking for more social interaction and greater convenience when it comes to managing their health.
That kind of model could grow much more popular in the coming years, especially if residents agree and fill the units quickly. If it is a success, healthcare providers and payors could eventually look to active adult communities as a first step to managing the health of younger seniors in order to prevent worse (and higher-cost) care episodes in the future. As the market grows, other seniors housing providers could glean some positives as well, since seniors in active adult communities already theoretically buy into the communal living model and have already uprooted from their houses. They should be an easier sell on assisted living services as they age and get frailer.
