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 64 2018 ASHA 50 2018 At the other end, younger seniors are looking for the latest amenities and a lifestyle package more in line with their ageless attitude. They expect dining experiences and social gatherings, workspaces, and oppor- tunities to connect with the wider community. They don't necessarily want to be reminded that they're getting older either. Owners and operators are trying to strike a balance between offering some services and a truly indepen- dent lifestyle. A lot of experimenta- tion is taking place. Much of the independent living market is being missed by owners and operators, according to Dr. Margaret Wylde, CEO of ProMatura Group, an industry consulting group based in Oxford, Mississippi. The Great Recession caused investors and owners to concentrate on the needs-driven product of assisted living, she explains. Older people would only move from a home they owned if abso- lutely necessary because the hous- ing market was so depressed. As a result, a lot of care components were added to what had been a truly independent living product. But a recent study by Wylde shows that 52 percent of 1,000 respondents age 75 or older would choose independent living over other senior living options. "They want a good place with a safety net of services," says Wylde. "But they want more flexibility and to live their own lifestyle." Among the top 31 primary markets, independent living posted an occupancy rate of 90.2 percent during the second quarter of 2018, according to the National Investment Center for Seniors Housing & Care (NIC) based in Annapolis, Maryland. The 90.2 percent occupancy rate for independent living during the second quarter was head and shoul- ders above the 85.2 percent rate for assisted living. The gap between the two segments is widely attributed to the large number of assisted living units that have opened in the past few years. Metropolitan markets such as Atlanta, Houston, Kansas City, and San Antonio have increased their independent living stock, but other markets such as Washington, D.C., Denver, Detroit, Los Angeles, New York, and Philadelphia, among others, have maintained relatively low-to-moderate supply growth. Delivering experience, not care Multifamily developers see independent living as an opportu- nity. The Wolff Company, a long- time multifamily developer, has a robust pipeline of senior living projects. Quadrum Global, a devel- oper known for its residential and hospitality projects, recently broke ground on a project in Fort Myers, Florida, that will include 300 inde- pendent living units. Alliance Residential, one of the largest multifamily developers and managers in the United States, has entered the independent living market. The company recently broke ground on Marvelle at Southcenter, an age-restricted rental apartment community in Tukwila, Washington, near Seattle. Marvelle is the company's new brand targeting the active adult market. Alliance will manage the Marvelle projects and is looking at development opportunities in other regions such as the east- ern seaboard, the Southeast and Southwest. "We are embracing the need for a new market segment in the active adult world," says Dale Boyles, managing director of senior housing for Phoenix-based Alliance Residen- tial. "We think there is an opportu- nity there." Boyles is based in the firm's San Diego office. Principals of the CBRE National Senior Housing team completed nearly $11 billion in senior housing investment sales and debt transactions between 2014 and 2018, encompassing over 50,000 units across the United States. How can we help you transform your real estate into real advantage? Matthew Whitlock Capital Markets Investment Sales/ Debt & Structured Finance +1 978 282 0024 Aron Will Capital Markets Debt & Structured Finance +1 713 787 1965 Lisa Widmier Capital Markets Investment Sales/ Investment Banking +1 858 729 9890 SENIOR HOUSING MARKET MAKERS

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