Worries by some analysts that senior housing construction is outpacing demand for senior housing services appear to be overblown, as numerous private and public sector entities continue to develop senior housing properties. The fact that actors in both of these sectors are working hard to develop additional communities provides evidence of the strong demand for senior housing services and the dynamic market for these assets. While interest rates remain low, senior housing providers and investors who are seeking capital to take advantage of the robust market for these assets through an acquisition or other method should contact Cambridge Realty Capital to learn more about the many different financing programs that it offers for senior housing transactions.
State Governments Lend a Hand to Senior Housing Developers
In Seymour, Connecticut, a project that was designed to add 26 senior housing apartments to the city’s downtown area was temporarily stalled until the state stepped in to help. Recognizing the need for additional senior housing in Seymour, Connecticut’s State Bond Commission stepped in and approved a $5 million construction loan that will allow the project to be completed. The construction is being led by Joseph Migani of O’Riordan Migani Architects and will be managed by the Seymour Housing Authority, which already manages nearly 200 senior housing units in the area. The facility is expected to take 3 to 5 years to build, and once it is completed it will house 26 one-bedroom apartments and a community room as well. Seniors in the community are understandably excited about the development because it helps fulfill a need in the area and because its location in the heart of the city will make it easy for residents to enjoy stores, restaurants, and other services that are located in Seymour’s downtown area as well.
A New Player Enters the Texas Market
Meanwhile in Dallas, Texas, the demand for senior housing communities has attracted a new entrant to the growing senior housing space there. AG Ventures, a Dallas-based developer has decided to enter the city’s senior housing market thanks to Dallas’ strong economy and the steady demand for senior housing services that’s being driven by the aging of the city’s population. AG Ventures’ first property in the area will be a $25 million, 120,000 square-foot facility in the Dallas suburb of Carrollton. The facility will have 135 units spread out over two separate wings and 4.5 acres; 100 of the units will be for assisted living and independent living residents and the remaining 35 will be for memory care residents. The architecture firm Rees Associates, Inc. is designing the property and AG Ventures has been vetting general contractors to lead the development of the facility. The firm’s management is excited about this project and future possibilities in the space as evidenced by its stated goal to build 3 to 5 properties a year in areas with strong economies and solid demand for senior housing services.
The actions taken by Connecticut’s State Bond Commission in Seymour, Connecticut and Dallas-based AG Ventures in Dallas, Texas, demonstrate the strength of senior housing assets in two states that are on opposite ends of the country. However, while these states might be far apart geographically, they share a common trait in that both are experiencing increased demand for senior housing services because of the continued aging of the population. While this demand continues and interest rates remain low, senior housing participants who are seeking capital to acquire assets in the space or for other purposes should continue to look to Cambridge Realty Capital for their financing needs.