Denver-based Headwaters Group announced its intention to increase its development and acquisition activity within the active adult market. The company recently launched its middle-market active adult initiative and will focus on for-rent communities for adults aged 55 and older in the western half of the United States, initially, with plans to expand nationwide.
Headwaters and an unknown joint venture partner plan to build a 169-unit active adult community in Centennial, Colorado and is also under contract for land in Northglenn to build a 169-unit active adult community. In addition to these two Colorado communities, Headwaters is currently in the works for two more projects in Longmont and Littleton, plus one in Scottsdale, Arizona. Plus, the company is set to close on the acquisition of an existing active adult community in Salt Lake City soon. Monthly rents at these communities will be similar to other multifamily rentals in the area, ranging from the low- to mid-$2,000s.
Headwaters Group plans to develop four to six communities a year, with each costing approximately $60 million, in addition to making a few acquisitions every year. Our Levin Pro LTC news tracked 84 active adult developments and acquisitions in 2022, by far the highest annual total for the sector, according to our records. And we do not expect Headwaters to be the last new entrant to the space in 2023.
