For those of you who know me, you know I have been a big fan of the CCRC model, and have been for decades. And for those of you who still think the entrance-fee CCRC model is dead, well, think again when you hear this.
HJ Sims recently closed on what may be one of the largest tax-exempt bond financings for a single-site CCRC new development, if not the largest. The total bond issuance comes to $398 million, or just over $1.5 million per unit, with maturities ranging from four years to 35 years. The interest rates range from 2.875% to 4.625%. It is located in Westchester County, New York.
The community will be situated on the campus of Purchase College, State University of New York. There will be 130 independent living units, mostly two bedrooms, 46 two-bedroom villas, 38 assisted living and memory care units and 44 one-bedroom affordable apartments.
Excluding the affordable units (which have more “modest” entrance fees), entrances fees range from $631,000 to $2,017,000. Monthly rents range from $4,430 to $10,400. This is, after all, Westchester County. They have pre-sold 80% of the units with 10% deposits. The independent living component occupancy rate of entrance-fee CCRCs within 15 miles of this new development average over 90%. Afraid of seniors housing? Not here.
Senior Care Development and LCS are developing the community, and LCS will be the manager. Let’s just say, in the right markets CCRCs are alive and well, and this will be top of the line.
