Many builders and developers in different markets, such as residential or multifamily, recognize the opportunity to become an Assisted Living developer or other aspects of senior living development. Nationwide the recession has strongly affected residential development, but many builders have viable properties for senior living development in a senior living feasibility study.
Once a defined need is established, we sometimes proceed thereafter with forecasting and other project assessments, such as a preliminary Uses of Funds for new projects. Senior Consulting then is often asked to help build a project-specific team through an RFQ/RFP process for key team members, including the following:
Senior Living Manager or Operator – Some managers operate Independent Living, Assisted Living and Memory Care, while other focus on Independent Living or Assisted Living. In most cases there is a difference between an Operator and a Manager with an Operator often having added responsibilities and becoming an equity partner based on investment or other value added services in premarketing or otherwise.
Architect – It is extremely important to select an architect with extensive experience in senior living development. Many have added experience in Assisted Living or Memory Care design while others have an expanded track record in Continuing Care Retirement Community architectural design.
Builder – While many builders of substance approach us to get into the senior living business, in almost all cases, lenders and investors will expect that the team includes an experienced Assisted Living builder or Continuing Care Retirement Community builder to understand the nuances involved in construction.
Debt and Equity Options– Senior Consulting can access debt and/or equity with the right project and the right team specific to that project. While there may be preliminary interest from a senior living investor, the ability to obtain a commitment depends on a viable project with substantial due diligence and a great senior living team. When we compete an RFQ/RFP on behalf of clients to establish the best team, we do so based on our experience and consultations as part of the process with a variety of funding sources in the industry, whether it be HUD brokers, bond financing or conventional financing.
Other Team Members – At a certain point, the project will require an appraisal. Typically the appraiser is selected by the lender, but sometimes the client requests an appraisal beforehand that can establish the value of a fully approved site versus the raw land and value added benefits in that regard of a developer. If needed, we can conduct an RFQ/RFP for appraisers and even local or regional engineers or counsel to assist in the approval process.
Ask us for more information on this process.