Earlier this week, we discussed how robust acquisition and construction activity in senior housing continues to demonstrate the appeal of the sector for investors. Today, we will discuss how joint ventures in the space are demonstrating the attractiveness of senior housing assets and the market’s strong fundamentals. Industry professionals seeking capital to enter into joint ventures or to purchase senior housing communities should contact the Chicago-based financing firm Cambridge Realty Capital to learn more about the many different financing options it offers for these and other purposes.

A Joint Venture Sees Opportunities in Arizona

In Phoenix, Arizona, Phoenix-based senior living operator Retirement Community Specialists, Inc. and Michigan-based housing developer Investment Property Associates, LLC, are planning a joint venture (JV) to develop luxury-style senior housing communities in the area. The joint venture will be called IPA, LLC, and will be managed by executives from both companies. Retirement Community Specialists (RCS) will provide the operational knowledge for the JV, and Investment Property Associates will provide the development knowledge and expertise in financing and building design. RCS already operates three communities in Arizona, including the Generations at Agritopia, a product of the joint venture between the companies.

RCS and Investment Property Associates first joined forces in 2012 to develop the Generations at Agritopia in Gilbert, Arizona. The Generations at Agritopia is a 118 unit assisted living, independent living, and memory care facility. The JV plans to add another Generations community to its portfolio next year when it breaks ground on the Generations at Ahwatukee in Phoenix, Arizona. The JV plans to develop other Generations communities going forward. Those communities will generally contain around 130 units, with approximately 40 of them designated for memory care, and the remaining units designated for independent and assisted living.

Each community is expected to cost around $30 to $35 million to develop, and will be located in or around the Phoenix area. The luxury-style Generations communities will offer many attractive amenities. The Generations at Agritopia houses a bistro, salon, fitness center, fine dining, movie theater, wine cellar, and ornate tea rooms. The facility also contains guest rooms for visitors, community wide Wi-Fi access, and outdoor patios and courtyards residents can use for relaxation and recreation. Future Generations communities will offer similar amenities, in keeping with the Generations luxury brand.

As the senior housing industry continues to perform well and generate positive returns for its investors, JVs such as the one between RCS and Investment Property Associates will enter the space to take advantage of the market’s strong dynamics. Parties in search of capital to consummate a JV relationship should look to Cambridge Realty Capital and its various financing programs for assistance in financing their joint ventures.

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