Seniors Housing Business

AUG-SEP 2015

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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36 www.seniorshousingbusiness.com Seniors Housing Business n August-September 2015 www.berkshire-group.com BERKSHIRE GROUP VENTURE INVESTMENTS Targeting strategic relationships with growing high-potential real estate operating platforms nationwide. Investing in entity-level and GP programmatic ventures. FOR FURTHER INFORMATION CONTACT: Larry Ellman 646.278.9690 larry.ellman@berkshire-group.com Jason Grossman 646.278.6115 jason.grossman@berkshire-group.com Matt Medearis 646.278.9692 matthew.medearis@berkshire-group.com Berkshire Group is a real estate investment management company known for What do seniors have in common with millennials? A lot actually Much has been made of the declining homeownership rate — now at approximately 63 per- cent, according to the Commerce Department. That's the lowest homeownership rate since 1967. The drop is often attributed to the preference to rent among members of the Millennial Gen- eration — young adults primar- ily in their 20s. A recent study published by the Urban Land Institute on Millennials showed that half are renters, up from 37 percent in 2010. The recession and housing bust, of course, have played a big part in the growing accep- tance of renting. But several studies pinpoint other factors that help explain why leasing is popular with Mil- lennials. As it turns out, they have a lot in common with seniors. Although the older genera- tion frmly believes in home- ownership — and many seniors who eventually move into a senior living community have owned a house — seniors are renters by choice for some of the same reasons as Millennials. n Neither group wants responsibility for home mainte- nance and repairs. n Renting provides fexibil- ity to stay or move elsewhere. Millennials can move for a job. Seniors can move to be near family or to assisted living when they need help. n Both groups prefer walkable neighborhoods with easy access to grocery stores and restau- rants, and near public transpor- tation. Compared with previous generations, fewer Millennials own cars. Seniors eventually give up their cars. n Neither group wants to have debt, or a mortgage. Mil- lennials have big student loan obligations. Seniors often live on a fxed income. n Apartment complexes for both groups include amenities, such as clubhouses and pools. Instead of buying a gym mem- bership, they can workout for free at the building or attend a ftness class with neighbors. n Both groups want to live near people their own age. Age-restricted apartments or those targeted at Millenni- als make it easy to make new friends. —Jane Adler About the writer Jane Adler is a free- lance reporter who has covered seniors housing for more than 10 years. She reports on the industry as well as consumer trends. healthcare services. Ryan Cos. is branching out from senior apartments to develop new projects that offer a continuum of housing with independent and assisted living and memory care units. Life Care Services of Des Moines will operate the projects under the brand name Clarendale. Clarendale of Mokena, south of Chicago, is scheduled to open in September with 156 units. In July, Ryan Cos. broke ground on Clar- endale of Algonquin, northwest of Chicago. The $40 million project will offer 186 units. While affordable apartments are easy to fll, picking the right loca- tion for the market-rate projects is key, says Ryan's Erickson. "The demographics and incomes have to be there." In California, Azulon project manager Reese says his team has discussed the problem of aging in place. He knows it's an issue with any age-restricted project. At some point, he fully expects to have conversations with adult children about their parents who are Azu- lon residents and need help. But Reese considers his project a real estate play rather than an operating business like continuing care and assisted living communi- ties. And, for now, he enjoys see- ing the residents engaged in the lifestyle at the property. When Reese walked through the community on a recent morn- ing, residents were using the pool and the ftness building. Someone was reading in the garden. Reese observed a few others walking to the adjacent shopping center. "Watching the community materialize is a rewarding experience." n

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