Build in Broken Arrow
At the beginning of this year, we wrote about the rise of seniors housing construction in the Tulsa, Oklahoma area, with four projects scheduled to open in the second half of 2015, representing a total investment of over $35 million. Indeed, according to NIC MAP data, the construction vs. inventory ratio for assisted living in the MSA is over 30%, one of the highest for any MSA in the country. Well, we have to add one more to the books, as Prevarian Senior Living just broke ground on a 105-unit assisted living/memory care community in Broken Arrow, Oklahoma. Prevarian, a private equity investor, is partnering with an affiliate of St. John Medical Center Hospital, on whose campus the... Read More »Seniors Housing: Build or Buy?
In this strong seniors housing acquisition market, when does it make sense to build a brand new community or buy an “A” quality community? Based on seniors housing construction projects since 2013 (which includes independent, assisted living and memory care, or some combination of the three), the average cost to build a new project is approximately $209,000 per unit. New construction, of course, comes with certain benefits. You will have a brand-new community with all the bells and whistles that can help attract attention. But you then have to fill it up, staff it and deal with the increasingly potential risk of a competitor opening up down the street. And to buy a stabilized, “A” level... Read More »New Fund hits development market
Blue Moon Capital Partners, a seniors housing private equity investor founded by industry vets Kathryn Sweeney and Susan Barlow, just announced the first project for its $175 million fund, Blue Moon Senior Housing I LP (BMSH). In December 2014, Blue Moon secured a $175 million capital investment from Scout Fund II through Hawkeye Partners, LP. Kicking off development will be a 180-unit seniors housing project in Northville, Michigan being developed with The Damone Group, which has developed over 120 projects in the last 40 years. With 96 IL units, 44 AL units and 40 MC units, the community will be built by the developer’s construction arm, Damone Construction, and operated by its... Read More »Build it and they will come
If your marketing team presells 75% of all units within two months of initiating pre-sales (and that number nears 95% pre-sold just after groundbreaking), then you clearly did your homework in determining local demand. Either that or what you offer is just better than any competitor around you. That is what Greenbrier Development has experienced as it breaks ground on Phase II on Beacon Hill at Eastgate, a CCRC in Grand Rapids, Michigan. First opened in 2010 with 114 independent living units, 40 assisted living units, 35 memory care units, 29 skilled nursing beds and 20 rental apartments, Beacon Hill filled to 95% occupancy within just two years. Now, Greenbrier is adding 56 independent... Read More »Zenith on the rise
Zenith Capital is expanding its investment in the Seattle-area yet again, with a $23.5 million assisted living/memory care project in Covington, Washington. The company, which specializes in providing alternative financing for the senior housing industry, is partnering with Seniority, Inc., a wholly-owned subsidiary of ABHOW, which is itself currently affiliated with the be.group. The community’s 98 units will include 64 for assisted living and 34 for memory care. At a cost of $23.5 million, or $239,800 per unit, the project pretty much equals the average cost to build like-facilities in the region (at $238,600 per unit), which is pricier compared to the rest of the country. Having closed... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
