Seniors Housing Business

ASHA 2018

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

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AS H A 50 18 2018 ASHA 50 2018 a lot of the existing product is older and it's not ideal for us to spend the effort and energy to reposition it. Can you explain the concept of scale in more detail? Butler: The size of Erickson Living communities enables us to pass along many benefits to our residents through economies of scale, resulting in a tremendous value to those who choose to make one of our communities their home. It's a brand differentiator. Land acquisition costs, site work and infrastructure are spread over a larger number of units and residents, so the cost per unit is lower the more units we build. Similarly, there are a number of fixed costs associated with operating a community. We not only pass these efficiencies along to residents in the form of lower monthly service fees, but we are also able to offer a much broader variety of programs and amenities than our smaller competitors. For example, our larger communities may offer our residents 10 or more different dining venues from which to choose. And we can offer a wide variety of specialized activity and meeting spaces such as movie rooms, creative arts rooms, woodshops, bocce ball courts, putting greens, catering facilities, theaters, fitness centers and yoga studios. The list goes on and on. What about the healthcare component? Butler: We build our projects in phases based on mar- ket demand, including our healthcare offering. We might start with 200 independent living units and a community building with amenity space, quickly followed by another independent living building or two. At that point in time, we begin construction of our higher levels of care because we know that is when our residents may need those Q&A with Alan Butler The independent living clubhouse — Woodland Commons — offers a variety of amenities and activities for residents of Windsor Run in Matthews, North Carolina. E x i t S t r a t e g y • C a p i t a l S o l u t i o n s • P a r t n e r s h i p P l a c e m e n t • C o n s u l t i n g Delivering Results. Focused On Solutions. The leading advisory firm exclusively focused on seniors housing and healthcare real estate. g e t i n t o u c h C h i c a g o • L o s A n g e l e s • B a l t i m o r e • D e n v e r • S a l e m

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