Seniors Housing Business

FEB-MAR 2018

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

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www.seniorshousingbusiness.com 51 February-March 2018 n Seniors Housing Business west? Do you plan to expand geographically? Schiffer: When you start in senior living, you want to go where the demographics are strong. Florida seemed like a natural. We were looking for unserved markets. As we grew, we looked at underserved markets. Then we reached a point where we were more than willing to go head to head with competitors. Now, we're expanding our reach. We're building in St. Louis, which is great because it's our home office. We entered Georgia because of three assets available for pur- chase. Next, we want to get peo- ple before they retire to Florida, so we're looking in New York, New Jersey and Connecticut. We are planning a community in New Jersey and are nearly able to start construction. Our goal in a market is not a one-off property, but to have two or three in a marketplace to create a new hub. That's really important to us. SHB: Are you looking to acquire in New Jersey, or just develop? Schiffer: Development now is our primary focus. There does seem to be a fair amount of trading of assets right now, so we keep our eye open to opportunities. Where we really bring our image — who we are, our brand — to a marketplace is through construc- tion. How we make an impression on people and how we build our value proposition comes across best with ground-up development. This is an interesting business because it's all a value conversa- tion. What are people willing to pay for, and how do you make it palatable to them? We're charging a fair amount of money. We really view ourselves as a company at the Cadillac level. Because of that, we're more focused on lifestyle. SHB: How is the Allegro portfo- lio split among the continuum? Schiffer: It's about half indepen- dent living, while the other half is assisted living and memory care. We try to always do things where we have multiple flavors, where it's not just an assisted liv- ing building. The industry calls it aging in place, but I think of it as increasing acuity in place. When it comes to age, 84 is 84 is 84. You'll be 84 no matter where you're moving. The level of care is an acuity requirement, not an age requirement. We used to have a property with skilled nursing, but that's not really who we are. We currently have no skilled nursing. We're starting to get involved in the active adult market. Active adult to me is what independent living used to be. We don't have any yet, but we are actively look- ing for locations and will probably come out with a varying brand that works well with that. Owning versus operating SHB: Does Allegro both own and operate its entire portfolio? Schiffer: We have no lease struc- tures. We'll sell a portion of our ownership. The way I describe it is taking the tracks from behind the train and moving them to the front. We build with an investor partner, monetize our investment, and then use that money to build the next community. We like to keep at least 10 to 15 percent ownership in our proper- University Groves – Sarasota, FL 183 units The Sovana at Stuart – Stuart, FL 182 units Allegro's Jupiter, Fla., location features 145 units of independent living, assisted living and memory care. Amenities include three dining areas, a stadium theater, fitness center, outdoor lap pool and a spa complete with dry sauna and steam room.

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