Market Feasibility Studies...
provides senior housing market feasibility studies for senior housing
development financing. Rainmaker Marketing Corporation has completed over 300 senior housing
market feasibility studies over the past 10 years, alone. Senior housing
market feasibility studies are (historically) Rainmaker Underwriting's
keystone service. We provide detailed analysis reports for assisted living
projects, independent living projects, entry-fee housing projects, congregate
living projects and continuing care retirement communities ("CCRCs").
At its core, the
market feasibility analysis answers the following critical path issues
pertaining to every commercial real estate development program:
Is there sufficient entrenched demand within the
primary marketing area of the proposed project to support new construction?
If there is sufficient entrenched demand, what price
points will be supporting the new facility in terms of routine rental
revenues and ancillary revenues?
If there is
sufficient demand and price support, what
are the expectations regarding services, project amenities and facility
What has been the historical utilization of these
projects? How fast have new projects leased up in the recent history
of the market?
The production of these feasibility reports generally
corresponds to the following steps:
Demand Analysis. Rainmaker Underwriting completes an initial demand analysis based upon
demographic information from third-party data vendors. This gives the
client the key "go-no-go" reality check for their project.
If the initial demand analysis report statistics do not demonstrate
sufficient demand to support the project at this stage, then the rest of the
reporting program is immediately abandoned. The reason for this is
that everything in our world is predicated upon demonstrable demand.
If there is sufficient demand, then the next phase is undertaken.
Investigation. Rainmaker Underwriting completes a survey of existing directly competitive
projects to determine price points, occupancy rates, staffing patterns, unit
class counts, unit class sizes, total unit counts per class and operating
costs. The result of this information is then used to modify the
Initial Demand Analysis.
Demand Analysis. Rainmaker Underwriting modifies the Initial Demand Analysis model to
reflect the findings of the Field Investigation.
Rainmaker Underwriting completes the final report. This is a full-color document (click
here to download a sample) that is
professionally formatted with all key data points and findings discussed on
an in-depth basis.
Goes Into An Underwriting?
The Rainmaker approach is truly
a comprehensive assessment with 66 exhibits collected on every project
that cover every aspect of the development, construction, operations and
regulatory matters. Collateral, credit and capacity underwriting reviews
are conducted using CREFC underwriting standards in addition to a
complete default risk analysis on term, maturity and technical default
risk profiles. Our typical underwriting report on a new
construction project will easily exceed 500 pages and catalogue all
transaction documents, plans and specifications.