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| | Senior Living
Development Consultants - Continued...
Senior living development programs and projects are all, more or less, bound
by the same building blocks with respect to the development, construction,
marketing, operations and capital financing needs each project (or roll-out)
entails. In point of fact, there are significant common issues pertaining
to the development of commercial real estate projects in general, and senior
housing and retirement living projects in particular. What you come to
understand generally, will also serve to help you make the transition from other
commercial real estate development endeavors will certainly help you maintain
focus on the overall development program pertaining to a senior housing
property.
The key development issues you have to grapple with respect to senior
housing projects are:
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Business model. Is this a rental
community or an entry-fee community? |
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Capital Funding Plan model. There are
different approaches to be utilized in capitalizing rental projects versus
entry-fee projects. Entry-fee projects offer the opportunity to
utilize a structured finance approach that leverages incredibly large-scale
projects (well over $50 million) with an initial investment of $1 million or
less because of the structure of the ownership interests in the
transaction. Remember, senior housing is the only industry where you
can (if you wish) sell each living unit twice - once to an institutional
investor and once to the future resident who pays an entry fee. |
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Operations. Operations must be managed
by a professional organization that specializes in senior housing properties
due to the complexity of the regulatory envelope and nature of the employee
management program and processes. Remember, there are few assets that
can demonstrate a return as comparative large as a senior housing operation,
but a poorly operated senior housing project will bleed money like there is
no end in sight. Get a good senior housing property manager and get
them in on the ground floor of the development program once the due
diligence matters are resolved and you are ready to commence the capital
funding cycle. |
Talk
to a Rainmaker Marketing Corporation consultant see what we can do for your retirement living
development ambitions... | |
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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