The added cost of memory care
If you have been following the seniors housing construction market in the last couple of years, you probably have noticed that most of the development that has happened has been assisted living, memory care or some combination of the two. So with all of that building, is there any difference in the average cost to build for either acuity? And are developers actually putting money where their mouths are when they talk about their specially designed, technology-rich memory care projects? When comparing average development costs (which are made up of seniors housing new construction projects announced since late 2013, and include both hard and soft costs), stand-alone MC communities did... Read More »Mainstreet’s latest IN property
Trilogy Health Services recently announced the opening of its latest Mainstreet-built facility in Richmond, Indiana, but the facility is different than any other the developer has built in recent years. Namely, it has no assisted living. Typically, Mainstreet facilities are known for their combination 70 skilled nursing (transitional care) beds and 30 assisted living units. And in the state of Indiana, according to our records, the average cost to build one of those facilities has been approximately $165,000 per unit, or $227 per square foot. We have to assume the Richmond facility will cost about the same, but will feature just 70 beds of skilled nursing/transitional care, though with all... Read More »Reposition and refinance
HJ Sims recently helped Cross Keys Village, the ninth-largest single-site not-for-profit CCRC in the country, obtain two bank loans, totaling $42.5 million, in order to both refinance a bridge line of credit and fund an expansion of its campus. Founded in 1908, the CCRC currently features 444 independent living units (in apartments, cottages and country homes), 91 assisted living units and 270 skilled nursing beds. The sponsor, the Southern District of the Pennsylvania Church of the Bretheren, together with architectural firm SFCS, Greenbrier Development and Sims, decided on a campus expansion project, which would include expanding its health center facilities (particularly its skilled... Read More »Avanti continues its growth
A relatively new developer in seniors housing, but founded by owners (Lori Alford and Tim Hekker) with plenty of experience in the industry, Avanti Senior Living is continuing its development pipeline, announcing its next project in Covington, Louisiana. Designed with the local style in mind, the planned community will resemble a large manor house, featuring 60 assisted living units and 50 memory care units. Rents will begin at $3,800 per month and go up based on care levels. At a development cost of $21 million, or 190,900 per unit, the community is on the higher end in terms of cost (the average for AL/MC new construction projects in the Southeast, excluding Florida, is approximately... Read More »Drever gets its pipeline off the ground
We wrote earlier this year of Drever Capital Management’s seniors housing ambitions in both the acquisition and development markets. The company, which has only recently shifted its focus from multifamily to seniors housing, had already made its first acquisition in 2012, purchasing a 124-unit independent living community in Lexington, South Carolina with just 50% occupancy. That deal happened to be a perfect example of Drever’s acquisition strategy of purchasing struggling communities, injecting some capital improvements ($3.7 million in this case) and hiring an operator (Renaissance Senior Communities) to improve census (it is up to 90% now) and maximize revenues. Since then, Drever has... Read More »Schedule a demo
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