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 39 October-November 2017 n Seniors Housing Business To fund your vision, visit WalkerDunlop.com CA Finance Lenders License #603H310 / CA BRE Broker #01982999 LAKE DELRAY $35,827,000 Delray Beach, FL Affordable & Seniors Acquisition Financing Freddie Mac J A C K S O N C R E E K S E N I O R L I V I N G $ 2 8 ,1 6 2 , 8 0 0 Monument, CO Alzheimer's, Seniors & Assisted Living Construction Financing HUD THE OAKS OF SHOREWOOD $20,000,000 Shorewood, WI Seniors Construction Financing Bank high barriers to entry. When Cad- dis enters a market, the company seeks to have between 400 and 500 units spread across the area, mean- ing there must be multiple devel- opment sites. For example, Caddis currently is developing two communities totaling 350 units in the Atlanta area. The company is looking for a third site to exceed the 400-unit threshold. "We don't want to do one com- munity per market," says Jacobs. "We want to do a group of three to five assets. That gives us scale and synergies to reach a critical mass in each market." Rumblings of potential over- building concerns don't seem to faze the executives at Caddis. They are quick to note that even in over- developed major markets, seniors housing is such a local business that it's about finding the right submarket, not the right macro market. "Here in Dallas, we have no proposed developments in Frisco, Plano or McKinney because there are too many other projects in the ground," says Signor. "We're in areas where there's really no development. People in Arlington or Fort Worth would never drive to Plano to visit a loved one. It's over an hour commute." "We try to look at it from a data analytics point of view, using GIS (geographic information system) like retailers do," continues Signor. "We're looking for the hole in the market before someone else exploits it." Although Signor says the com- pany is not opposed to acquisi- tions, its desire to only own build- ings less than three years old makes those opportunities few and far between. To date, Cad- dis has only acquired one seniors housing property and developed the rest. "Development is the core of the strategy," says Signor. Although the company is open to the idea of a "capital event" such as a sale or recapitalization several years down the road, its present strategy is to hold all its properties indefinitely. "We believe in the increasing demand in the seniors housing space due to the projected demo- graphic growth over the next 15 to 20 years," says Signor. "Given that roughly 60 to 70 percent of the market's seniors housing supply is over 20 years old, most of the com- peting communities will become functionally obsolete as the mar- ket demand begins to peak. The Heartis portfolio of new communi- ties will be ideally suited to cap- ture that increase in demand." The company has also grown its home office, expanding its space to accommodate a team of 55. Thanks to the office culture and recent rebranding, employee retention has seen incredible improvement, rising from 67 percent in 2013 to 91 percent in 2016. Signor credits this dramatic increase to a variety of strategies to keep employees engaged and inter- ested: a new open-office floor plan, semi-annual workshops for shar- ing ideas, diversity in hiring and a rounded conference room table with no head, meaning everyone has an equal voice at the table. Jacobs was quick to credit his CEO for the continued growth of Caddis. "Jason won't brag on himself, so I'll brag on him," says Jacobs. "He has a background in civil engineer- ing, has an MBA in marketing and is chairman of the Texas Business Hall of Fame. He's a great thinker, a great leader and the biggest rea- son our company is successful." n Amenities at Heartis Arlington in Arlington, Texas, include a secure courtyard, outdoor walking paths, game and activity rooms, and a beauty/barber shop.

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