Seniors Housing Business

OCT-NOV 2017

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

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www.seniorshousingbusiness.com 37 October-November 2017 n Seniors Housing Business © 2017 BOK Financial Corporation. Services provided by BOKF, NA. Member FDIC. BOKF, NA is a subsidiary of BOK Financial Corporation. *Transaction included $1.1 million of junior debt financing from BOK Financial Capital Corporation, a subsidiary of BOK Financial Corporation. Banking Services Designed For Healthcare From A Partner With Experience You Can Trust. BOK Financial has experienced professionals who can help you balance growth and expansion while providing capital support. Multi-facility Senior Housing Operator Acquisition of a portfolio of properties $135 million loan syndication Maryland Skilled Nursing Facility Term loan & revolving line of credit for acquisition $23.6 million New York Multi-facility Senior Housing Operator Acquisition, finance & bridge loan for seven properties $20.5 million Colorado Real Estate Investment Firm Portfolio refinance for three senior living facilities $7.7 million Ohio Assisted Living Facility Owner/ Operator Refinance two senior living facilities $23 million Colorado & Oklahoma Skilled Nursing Facility Owner/Operator Acquisition of Senior Housing Campus $6.8 million* Missouri Recent Healthcare Client Credit Solutions 918.588.6405 | www.bokfinancial.com units and have a regional team on-site." C a d d i s fully owns the Heartis brand, along with the collateral, web- site and e-mail addresses for both the brand as a whole and for individual communities. Any- thing related to that brand is run through Caddis, not the individual operator. "The operator is responsible for executing the brand, but not for managing it at that higher level," says Signor. "We have sophisti- cated, MBA-level people that can manage that. It also gives us the buying power of a larger brand." Heartis' marketing is meant to appeal to middle-income seniors, offering high-end amenities and high-quality care in brand new buildings at a price point only slightly above older, competing product in a market. Since the majority of costs at a seniors housing community are related to care, Caddis believes it can offer the same level of care as its local competition in a newer building for only a slight price increase. The idea, according to Signor, is to offer residents a choice between an old, dilapi- dated building versus a brand new Heartis building at a monthly price difference of only about $500. The cost differ- ence is negligible, but the quality- of-life difference is tangible. "We have smaller units to keep the lower price point," says Klein- smith. "As care increases, the residents pay more, but the entry point is one that pretty much everyone can afford." One-bedroom unit sizes in Heartis communities average 678 square feet for independent living, 427 square feet for assisted living and 400 square feet for memory care. The average monthly rents are $3,213 for independent liv- ing, $3,773 for assisted living and $5,500 for memory care. The company enjoyed the Heartis branding project so much that it decided to take the same approach to parent company Cad- dis, totally refreshing the brand and redesigning its home office. "We were able to really bring the Cad- dis brand to life within our office," says Signor. "It's clean and extremely effi- cient. You will not see a bunch of granite and wood paneling or expensive fin- ishes. We're very practical, effi- cient and cost-effective. That's who we are." A data-driven approach Caddis executives pull no punches when providing their views on the state of branding and design in seniors housing today. "We found other brands to be very stagnant. A lot haven't adapted or evolved over time. How many have 'garden' or 'park' or 'leaves' in their insignia or name?" asks Signor. "There's no differentiation. When you look at an operator, you can't tell one from the other." A 32-member focus group helped develop the Heartis name and brand. A marketing and pub- lic relations firm helped perform a brand audit to ensure that Heartis stood out against the competition. Caddis intentionally selected a firm with no connection to seniors housing. "We wanted to go in with a group that wasn't encumbered by the things that generated the seniors housing brands that all look identical," says Signor. "This was a complete, fresh approach to developing a new brand in a new industry from scratch. It was very methodical." The internal marketing team is made up of people who first spe- cialized in marketing, then learned the seniors housing industry later. That's a reverse of the industry standard, where marketing pro- fessionals start in seniors housing and rise through the ranks. Pro- moting from within seniors hous- ing only results in a myopic view of marketing, according to the Caddis leadership team. "The usual marketing execu- tives don't have a classic training in brand management and market- ing," says Signor, who himself has an MBA in marketing. "Our mar- keting background allows us to use more sophisticated measures and data analytics, different tools to get a better grasp on our brand, Jason L. Signor CEO Jud Jacobs Executive Vice President, Partner Katie Kleinsmith Senior Vice President

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