Assisted Living Development, New England
Mystic Senior Living
In 2012, we were contacted by Joe Mastronunzio of Brom Builders in Norwich, CT. We are often contacted by builders like Joe and his brothers, who were residential and multifamily developers looking to get into senior living. Unlike many who contact us and have a particular property, they understood the value of market analysis to find the right market and location.
We agreed to conduct three studies encompassing most of New London County, CT before identifying opportunities in two markets, with the greatest opportunity in the Mystic market. Thereafter, we conducted financial analysis, sizing, sources and uses of funds, and discussed with a variety of lenders in the industry. The market was still rebounding from the crash with dramatically fewer opportunities for financing in 2012 than exist in 2015. This was particularly true for Independent Living, which is a consideration in addition to Assisted Living and Memory Care. Church Senior Living development opportunities may also be an option.
Realizing financing options were limited at the time, we focused on the Assisted Living only and conducted an RFQ/RFP to HUD mortgage brokers that helped us size that potential financing. Concurrently, we conducted an RFQ/RFP for an operator, an architect, and a builder to assemble key components of the team. Brom had done much development locally, so they addressed the need for local engineers, including civil and environmental, as the project moved forward. Brom identified a great site.
We served as a consultant for Brom during the initial 18 months or so of their journey as a Senior Living Developer. The site had some restrictions, including being best-suited for a building that was a combination of Assisted Living, Independent Living, and Memory Care. Brom initiated discussions with the Connecticut Masons and eventually came to terms to sell the site to them for development of 179 units to Masonicare (of Connecticut), retaining a stake in the project versus Brom’s affiliate as a stakeholder.