Active adult new construction activity continued apace this past week with multiple developers breaking ground on communities throughout the country. We are sure rising interest rates have stopped a number of projects, but many developers surely see plenty of opportunity in the emerging sector. As covered in our active adult webinar in June, one question that arose was whether it’s better to build or buy active adult communities right now. Back then, the answer was a resounding “Both.” However, in light of the high capital costs these days, purchasing a community at a 4% cap rate when the 10-Year Treasury Yield is approaching 4% may not make as much sense right now.
In Northampton, Massachusetts (Springfield MSA), a partnership between Live Give Play and Spiritos Properties will develop a 70-unit active adult project located downtown on a walking/biking path in close proximity to Smith College. The community was designed by BKSK Architects and will rise five stories totaling 110,000 square feet. Completion is slated for late 2024.
Summit Senior Living announced it is building its fifth active adult community just north of Albany. The three-story building will be roughly 150,000 square feet and include 110 units on two parcels of land in Halfmoon, New York. BBL Construction Services will be overseeing the construction of the community, and the project is being financed by NBT Bank. It is expected to open in the fall of 2023.
Arden, a new active adult company started in 2020, announced that it has broken ground on Arden at Indian Land, a 128-unit active-adult community located in Indian Land, South Carolina, just south of Charlotte, North Carolina. The building will be four stories and 152,000 square feet, including one- and two-bedroom units for rent. The project is expected to be completed and open in 2024. Arden is working with Harkins Builders, Inc. R4 Architecture and a team from UNC Charlotte on the development of the community. This is one of four active adult development projects Arden has planned for the region.
