Construction Costs and Operations Costs: What’s Really the Problem?

Posted on | by Nikki Lopez

I am hearing different stories from clients in my discussions.  There is no doubt that occupancies in Senior Living are down.  There is no doubt that projects are requiring more equity, and equity demands a higher return.  There is no doubt that staffing is more difficult to find and more expensive.  There is also no doubt that construction prices have risen dramatically in the past six to eight months due to supply issues caused by a myriad of factors. 

A client said to Bob Ritter, our Director of Business Development, the other day that he couldn’t look at new construction projects because construction costs were too high.  I wonder if that is accurate.  My experience in owning Senior Living projects is that capital costs are a minor part of the total operating budget.  Operating costs are the vast majority.  So if construction costs go up 10%, as an example, it...

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Active Adult – Leading the Way Post-COVID

Posted on | by Nikki Lopez
Active Adult – Leading the Way Post-COVID

A somewhat new segment of rental active adult housing is showing signs of leading the way for senior living development post COVID.  Our estimating department is currently budgeting and pricing several active adult projects for multiple clients.  The product targets baby boomers in early retirement, looking to downsize, but who are years away from needing independent living or assisted living services.

Many seniors no longer want the maintenance and overhead of a large house, like the idea of increased socialization, but don’t require assistance with activities of daily living.  Active adult communities tend to command a premium over standard multi-family products, and because the residents are primarily retired, their incomes are somewhat insulated to swings in the job market and economy.  Another plus for developers, residents of active adult communities typically stay for five years or longer.

While the pandemic has impacted occupancy in all senior living sectors, several owners and operators...

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The Douglas Company is serving as the general contractor for the new $11.7 million Maumee Pointe assisted living and memory care

Posted on | by Nikki Lopez

The Douglas Company is serving as the general contractor for a new $11.7 million assisted living and memory care project that recently began construction. Maumee Pointe assisted living and memory care will be located at 1050 Medical Center Pkwy, Maumee, Ohio. 

Designed by Davison Smith Certo Architects, Inc., Maumee Pointe will be a 69,310 square-foot assisted living and memory care community developed by Sage Real Estate Development of Rochester, New York. The new senior living community will consist of a single-story building including 22 memory care units for individuals with dementia-related conditions and a two-story assisted living building offering 58 one-bedroom suites for those needing assisted living services.

Amenities at Maumee Pointe will include an arts and crafts area, spa, chapel, bistro and dining area, wellness center, sunroom, and lounges. The exterior layout consists of two courtyards, a fire pit, and a greenhouse. Davison Smith Certo Architects, Inc....

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Getting the Right Team in Place

Posted on | by Nikki Lopez

Due to the ongoing impacts of COVID-19, some new projects struggle to secure the necessary capital stack to move forward.  This has been more of an issue in the senior living segment than the multi-family segment; the multi-family space has remained resilient during this challenging year in regards to financial backing for new construction.  In speaking with our friends in the debt and equity circles, the money to fund new ground-up senior living projects is getting much more selective, but I am still being told “the good deals/projects find a way to get done,” that is positive to hear.

In this environment, now more than ever, developers need to have the best teams possible in place to support a successful project.  This of course, includes their general contractor, architect, and operator.  Debt and equity sources need to feel confident that the project has the best possible chance of success. The whole...

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The Douglas Company announces construction is underway on the new Eastern Woods Senior affordable housing apartment community in Findlay, Ohio

Posted on | by Nikki Lopez

The Douglas Company, an award-winning Toledo, Ohio based general contractor, announces that construction is underway on the new Eastern Woods Senior apartment community,  designed to offer affordable housing to the growing senior population in and around the Findlay, Ohio area. Pennrose Properties, LLC of Philadelphia, Pennsylvania, is partnering with Blanchard Valley Health System on the new development, scheduled to open in late summer 2021.

Designed by architectural firm Moody Nolan, Inc., a Columbus, Ohio based company, the development will consist of 50 senior apartment units in one three-story building, with a total square footage of 49,677. Amenities include elevator service, resident storage, fitness center, on-site management office suite, community gathering space, outdoor patio, and ample on-site parking all within the peaceful, walkable, amenity-rich Eastern Woods mixed-use campus.

"We are very excited to get started on this project, these apartments will be a much-needed community resource that will help meet...

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Fighting COVID-19 with Bi-Polar Ionization

Posted on | by Nikki Lopez

As we continue to learn, adapt, and move forward during a global pandemic, we understand that poorly ventilated buildings are a significant risk factor in the transmission of COVID-19.  Operators and developers who are planning new senior living communities will want to consider air cleaning technology as an option for creating and maintaining cleaner indoor environments that reduce the spread of disease.

Bipolar ionization systems have been tested and found to reduce the levels of various types of airborne contaminants with a MERV equivalent of 13 without the pressure increase of MERV 13 mechanical filters.  During the cleaning process, ions attach to airborne particles like dust, dander, and pollen, subsequently increasing their mass and size. This allows the air filtration system to easily capture the larger particles, increasing the capture efficiency of the HVAC system.

In addition to health benefits, this technology can save building owners 30% on conditioning costs because it...

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What’s the New Standard in Senior Living Communities?

Posted on | by Nikki Lopez

It’s hard to believe that it was in May that I blogged about being ready to “turn the corner” on everything that was impacting the country.  I guess I was a little impatient.  In the meantime, it is as we predicted that there would be some creative times ahead in the design and construction of senior living communities. 

We have spoken with a lot of our colleagues in the senior living operations and design community in the last couple of months to learn about what they want to implement into their future projects to increase health and safety when a contagious health crisis such as Covid-19 hits.  At the top of the list is upgraded HVAC systems to better filter airborne pathogens as well as increase fresh air circulation.  A close second is UV technology to kill microbial particles (both incorporated into HVAC systems as well as other equipment options for...

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The Douglas Company is pleased to announce the completion of the Legacy Ridge Memory Care Community

Posted on | by Nikki Lopez
Legacy Ridge Memory Care

The Douglas Company, an award-winning Toledo, Ohio based general contractor specializing in multi-family, senior living, and mixed-use construction projects, is pleased to announce the completion of Legacy Ridge, a new 41,189 square foot, single-story memory care community in Gainesville, Virginia.

The Douglas Company was pleased to work alongside the developer, Dillin LLC, and architect, M&A Architects, on another exceptional senior living project. This $11.6 million community features a blend of Hardi lap siding and beautiful brick veneer and includes stylish design elements such as architectural louvers, chimney pots, and large viewing windows. The 64 units offer built-in storage and walk-in showers with single or double occupancy options available.

Legacy Ridge combines contemporary elegance with a warm, inviting environment that is sure to create the feeling of home. Mealtimes are celebrated in the full-service kitchen and multiple dining rooms, featuring relaxing fireplaces, and restaurant-style dining options. The Fitness center, salon,...

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Designing Senior Living Communities for COVID-19

Posted on | by Nikki Lopez

Recently I had the privilege of participating in a design charrette for a new IL/AL/MC facility.  Obviously the current pandemic is on everyone’s mind.  No one knows when it will end, if the virus will morph and/or come back, or if we will someday need to deal with another similar crisis.  So the decision was made by the client that the facility needed to be designed not only to protect the residents and staff but also in such a progressive manner that the operator could use this as a strategic advantage in the marketplace.  Their concept is that they want to be known as a place safer than home-where professionals know how to keep you safe. In my experience, these discussions are just starting, so there is much to learn and will continue to be, but some of the ideas that came out were as follows:

  • Electrostatic sanitation systems.
  • Safe visitation areas.
  • A...

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Post Covid-19 Senior Living Communities

Posted on | by Nikki Lopez

The Covid-19 pandemic has impacted nearly everyone and somehow touched every aspect of the world in which we live.  It will change many aspects of the senior housing industry, including not only the prospects for new development but the design and functionality of new senior living communities.  While the ramifications both short and long term are still unclear, the pandemic will not change the vast wave of baby boomers who will provide steady demand growth for senior housing for several years beginning in 2022.

Most experts within the senior living industry continue to express optimism about the long term prospects for senior housing, and particularly the assisted living, memory care, independent living and active adult segments, all of which have experienced significantly fewer cases of Covid-19 than have been realized in skilled nursing communities.

As we begin to look to the future, it seems inevitable that Covid-19 will have a lasting impact...

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The Douglas Company announces that construction has begun on The Grove at Trelago

Posted on | by Nikki Lopez

The Douglas Company, an award-winning Orlando, Florida based general contractor, announces that construction has begun on Vestcor Communities' newest $21 million assisted living and memory care senior housing community. The Grove at Trelago will be located along Maitland Boulevard east of I-4, with the elegant backdrop of Lake Charity.

This luxurious 113,989 square-foot assisted living and memory care community designed by PQH Group Design Inc. will be comprised of 96 assisted living units, 20 memory care studios. The Grove at Trelago will boast spacious, well-appointed studio, one and two-bedroom assisted living apartments as well as private memory care residences. The expansive resort-style community will include a fitness and wellness center, movie theatre, multiple dining options, a beauty salon, a grand atrium staircase, and areas for social and educational programming. Outdoor amenities include a resort-style pool, plantation-style porches, luxuriously landscaped courtyards, a putting green, outdoor fireplace, numerous water...

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Turning the Corner

Posted on | by Nikki Lopez
Turning the Corner in design for senior living

Who is ready to turn the corner on everything that has been in front of us in the last couple of months?  I know I am.  While The Douglas Company has been fortunate and grateful to continue operations as an essential business during this pandemic, it has, of course, prevented me from getting out and seeing clients, prospects, and my networking partners, unfortunately.  As I’m sure many can relate, Zoom is just not the same!

That being said, and while it could have spawned from better circumstances, there will be some interesting and exciting times ahead for the design and construction of multi-family spaces in particular senior living communities. 

We have been busy in our estimating and pre-construction departments assisting clients with conceptual budget estimates and value engineering as usual and look forward to seeing more and more creative ideas on how to address health crisis type issues that can...

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Active Adult Senior Communities

Posted on | by Nikki Lopez

As I talk with both senior living and multi-family developers, there is a big focus and many questions relating to “active adult” or “age-restricted’ apartments.  It makes sense for many reasons, but the average age of entry stands out the most.  Today the average age at which a person moves into traditional senior housing is 85, with an average length of stay just over six years.

The move-in age for active adult communities is in the low to mid-70's.  The oldest members of the baby boomer generation, those born in 1946, are just now turning 74.  This creates a true opportunity to capture a younger senior demographic ten years earlier than traditional senior living facilities.

Boomers considering active adult communities prefer renting over owning to provide them with economic and logistical flexibility.  They are attracted by a sense of community and are healthy enough to not need traditional care-based senior housing.  At...

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What Should Senior Living Construction Really Cost?

Posted on | by Nikki Lopez

After years of attending the NIC and ASHA conferences, I feel a need to shout out about the construction costs that one of our competitors supply to them for senior living.  Frankly, I don’t know how anyone could make the numbers work for a project with the costs that they promote.  First of all, construction costs per square foot are probably the wrong numbers to be considering when developing proformas.  Cost per unit or cost per bed is what matters because revenue is based on cost per unit and cost per bed.  Cost per square foot can be an extreme variable depending on space usage.  As you can imagine, as an individual room increases in size, the cost per added square foot isn’t much.  So larger units cost less than smaller units on a cost per square foot basis, but the incremental cost per unit is not that much different. ...

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Eastern Woods Senior – Coming June 2021

Posted on | by Nikki Lopez

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Mid-Market Musing

Posted on | by Nikki Lopez

I learned early in my career how little I know.  Though we have built more senior living than anyone I know and have been exposed to very successful senior living developers and operators, they all operate differently.  Someone recently said to me, “An expert is someone who knows more and more about less and less until eventually, he knows everything about nothing.” But I don’t think that is the case in my situation.  It’s just that there are a lot of ways to be successful if you know what your Hedgehog Concept is, as Jim Collins would say.

Mid-market became a newer thing a couple of years ago.  They often say what is old is new, and this might be one of those situations.  We, in conjunction with a number of clients, are working on several mid-market concepts.  They hearken back to the eighties when this industry was starting, and people’s...

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The Stepping Stone for Baby Boomers

Posted on | by Nikki Lopez

The “Silver Tsunami” of Baby Boomers is not knocking on the door of assisted living communities just yet and still has several years to go before they are.  So how are senior living developers going to entice these folks to leave their homes?

A recent article in Senior Housing News noted that in a survey of 120 senior housing professionals, 87% of them responded that they are currently pursuing active adult apartment projects.  They see the need for a stepping stone so to speak; getting seniors to leave their homes that are nowhere near ready to move into an Independent Living community much less an Assisted Living community.  Seniors in this segment are still looking for active, vibrant lives and are not ready to see what the future looks like by living in communities where they would see just that. 

If seniors can stay in place longer in these communities with the...

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