The numerous acquisitions taking place in the senior housing sector, and the large amount of ongoing construction in the industry, continues to demonstrate the appeal of senior housing assets. Senior housing construction is taking place all across the country as providers and investors try to meet increased demand caused by the nation’s demographic changes. Low interest rates are helping to keep senior housing construction activity robust. Before interest
rates rise, parties seeking capital for senior housing transactions should contact the successful Chicago-based financing firm Cambridge Realty Capital. They can help you learn more about the many different financing options they offer for a variety of purposes.
Construction Activity in the Midwest
In Pittsfield Township, Michigan, the town’s Board of Trustees recently approved a development agreement allowing Unified Property Group to build a new senior housing community. The 158-unit housing community will sit on 42 acres of land and is estimated to cost $30 million. The community will feature a sprawling complex, which will include a two-story, 175,000 square foot building for housing up to 228 independent living, assisted living, and memory care residents in its four wings. It will include five standalone buildings, four of which will be mixed-use buildings with retail space, offices, and apartments. Unified Property Group is extremely confident this development will succeed, and points to a track history that includes operating 22 campuses in Michigan and Ohio with a combined 94% occupancy rate.
In Woodbury, Minnesota, Oppidan Investment Company began developing Red Rock Senior Living, its first senior housing community. The property’s manager will be Ebenezer Management Services. The estimated cost of the community is $14 million. With those funds, Oppidan will build Red Rock into a two-story community to house 32 memory care apartments, 39 independent and assisted living apartments, and five care suites. It will include a number of attractive features and amenities such as outdoor patios, gardens and walking paths, a chapel, club room, salon, community theater, movie theater, and spa.
In Lombard, Illinois, Iowa-based company Lifespace Communities began a $15 million expansion of its Beacon Hill community. The project will include new dining and meal preparation areas, an auditorium, a kitchen, and a loading dock. Minneapolis-based architecture firm Tremain Architects & Planners, Ltd. and Chicago-based construction company Walsh Construction are spearheading the expansion. Lifespace Communities hopes the expansion will improve quality of life for all its residents and lead to increases in occupancy and net operating income.
These construction projects represent just a few of the many projects taking place across the country as providers work to meet increased demand for senior housing services. As construction continues and more communities come online, industry participants seeking capital to add senior housing assets to their portfolios should look to Cambridge Realty Capital for their financing needs.