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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38 www.seniorshousingbusiness.com Seniors Housing Business n October-November 2017 and push that out to our consum- ers via mass media and the Inter- net. We get a better quality prod- uct at the end of the day from a marketing perspective." Much like making sure to avoid stereotypical images of the indus- try, such as foliage, the Heartis brand also aims to put a more pos- itive spin on the industry through marketing. Many brands market to the care side of the equation, which Kleinsmith says is the "least attractive part of senior living." "They want to overcome the guilt among adult children and talk about how to handle frailty. Our whole brand is based on the idea that seniors can have fun. Our mission supports that quality of life." When it comes to advertising that brand, Caddis used a study of 1,500 existing senior residents, combining demographic and con- sumer spending data. This study has enabled Caddis to strategically target potential residents with advertising campaigns. "That allows us to be smarter with media. We know what radio and TV stations they're watching, and can send out mailers based on a census block rather than a blan- ket ZIP code," says Signor. "We look at where our consumer comes from. If we're going to spend money on marketing, we want to make sure we hit the right group." Caddis as a whole is a big believer in data-driven results, and the company identifies expansion markets using that same approach. Ever-growing portfolio Caddis is moving at a fast clip as far as new development. The com- pany targets approximately $200 million in seniors housing con- struction starts every year, usually between four and five new com- munities at an average develop- ment cost of $40 million each. The company has five seniors housing communities currently under con- struction and six additional devel- opments planned. The portfolio growth is funded by a combination of internal capi- tal and low-leverage construc- tion loans, usually at a loan-to- value ratio of 50 to 55 percent. The company also partners with a few investment funds powered by high-net-worth individuals and family offices, which provide approximately $150 million a year for Caddis to expand. "We doubled our revenue in a two-year span, and I think the sky's the limit on that," says Signor. "We're closing a fund intending to buy $500 million in medical office acquisitions, and in the near future we're doing the same thing with a $150 mil- lion fund for the seniors housing space." The next hot development targets for Caddis are Milwaukee, Atlanta, Pennsylvania (Pittsburgh and Phil- adelphia) and Florida (Tampa and Sarasota), although none of its 17 communities currently open are located in those markets. The same deep-dive analytics that provide marketing data also help Caddis decide where to build next. "Our market study is based primarily on basic supply and demand, as well as our ability to secure licenses and the work- force necessary," says Jud Jacobs, executive vice president of devel- opment. "Once we've picked the macro market, we do site selection based on a more empirical analy- sis. We look at the results and pick the most advantageous location." The company largely focuses on the top 20 U.S. metros with Heartis San Antonio in San Antonio, Texas, includes a putting green, which not only provides entertainment but encourages residents to stay active.

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