Market Watch - July 2017 
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The Highland Group, Inc.
The Market Watch

Market Watch - July 2017

Seniors' home equity highest level since 2000
Groundbreakings, openings and sales: Affinity, Columbine, River Valley inn, Ensign, Ralston Creek, MorningStar
New development profile: Eben Ezer Lutheran Care Center

Seniors' home equity level highest since 2000 - Senior Housing News reports

Reprinted from Senior Housing News, June 27, 2017 by Tim Regan

Older adults might now have a little extra spending power when looking for new senior housing.
Homeowners ages 62 and older saw their home equity rise to $6.3 trillion in the first quarter of 2017, up from $6.13 trillion in the fourth quarter of 2016 and the highest it has been since at least 2000, according to a new report from the National Reverse Mortgage Lenders Association (NRMLA).

Growth in housing wealth for retirement-aged homeowners was driven by a $199.3 billion improvement in senior home values and offset by a 0.6% increase of senior-held mortgage debt equaling $9.2 billion, the Washington, D.C.-based trade group said.

Additionally, the NRMLA/RiskSpan Reverse Mortgage Market Index, a quarterly measurement of home equity held by older homeowners, rose to 227.07 in Q1 2017, another all-time high since the index was first published in 2000.
Developed with the Tysons Corner, Virginia-based research firm RiskSpan, the RMMI tracks equity by subtracting the amount of mortgage debt held by Americans aged 62 and older from their associated home values, then indexing the result against the baseline amount of 62+ equity in March 2000, when seniors held just $2.38 trillion in home equity.
Seniors’ home equity has risen steadily since the middle of 2011, when the housing crisis and Great Recession began to ease.

Many older adults sell their homes or take out reverse mortgages when moving into a senior living community. In theory, the more equity seniors hold, the more money they might have to spend on senior housing.


Groundbreakings, openings and sales


There are several pending groundbreakings – stay tuned for August!


Affinity at Fort Collins, a new age-qualified, market-rate and income-restricted property in Fort Collins, opened in July 2017. The property includes 143 market-rate units and 18 affordable units at 80% of Area Median Income (AMI). The general contractor is Brinkman Partners and the architect is Nystrom + Olson Architecture. The property is managed by FPI Management and owned by The Inland Group.


Westwood Patio Homes, an addition of 34 units of duplexes and triplexes to the Columbine Commons campus in Windsor, completed its final units in June 2017. The campus also includes skilled nursing and assisted living. The general contractor was Beacon Construction and the architect was r4 Architects. The property is owned and managed by Columbine Health Systems.


River Valley Inn, a 60-bed skilled nursing facility in Del Norte, opened in June 2017. The property will be owned and managed by  C&G Health Care Management, Inc., which also owns and/or manages 8 skilled nursing facilities; six in southwestern Colorado, and two in Arizona and New Mexico.  The new skilled facility will accept Medicare, Medicaid, and private pay residents.



In July 2017, Sable Care and Rehabilitation Center in Aurora was sold by Blueprint Healthcare Real Estate Advisors to an undisclosed buyer for $5,400,000. The 120-bed skilled nursing facility will be managed by Vivage.


In July 2017, The Ensign Group, Inc. acquired two properties in Colorado from Centura Health, The Villas at Sunny Acres and Medallion Post-Acute Rehabilitation/Medallion Villas. The Villas at Sunny Acres in Thornton includes 134 beds of skilled nursing, 35 units of assisted living, and 198 units of independent living. Medallion Post-Acute Rehabilitation/Medallion Villas in Colorado Springs includes 60 beds of skilled nursing, 44 units of assisted living, and 64 units of independent living. 


Haverland Carter LifeStyle Group purchased Ralston Creek Living, a 109-unit assisted living and 36-unit memory care community in Arvada. The property name has been changed to Ralston Creek Neighborhood. The purchase price was $46.95 million.


In July 2017, Harbert Seniors Housing Fund I LP acquired MorningStar of Wheat Ridge, a 45-unit assisted living and 19-unit memory care property, from Confluent Senior Living. The price of the sale was undisclosed. MorningStar Senior Living will continue to operate the property.


New development profile: Eben Ezer Lutheran Care Center

Eben Ezer Lutheran Care Center in Brush, Colorado has begun the first of a several stages of redevelopment of its historic campus. Eben Ezer Lutheran Care Center is a non-profit continuing care community, established at its present site in 1906. The redevelopment will first add new memory care and assisted living. Later stages will add new skilled nursing facilities to replace its existing buildings.
The architect is Oz Architecture and the general contractor is Fransen Pittman.

Eben Ezer is located at 122 Hospital Rd, Brush, CO 80723.

Phase 1 includes the addition of a new 18-unit memory care assisted living building, as well as a new 54-unit assisted living building, replacing the community’s existing assisted living building. The larger portion of this new building will be two stories, totaling 53,000 square feet. All units will be private rooms with private bathrooms, inclusive of walk-in showers.  
Phase 2 will include two 14-unit skilled nursing neighborhoods. One of these will be a transitional care unit. All units will be private rooms with private bathrooms, inclusive of walk-in showers.
Phase 3 will include new central service amenities, including a new central kitchen, laundry facilities, and central receiving. This phase will also include a large meeting/conference space.
Phase 4 will include two 14-unit skilled memory support nursing care neighborhoods. These neighborhoods will each have access to their own private outdoor courtyard. All units will be private room with private bathrooms, inclusive of walk-in showers.
The goal of Eben Ezer throughout these four phases is to provide all residents a private room inclusive of a private bathroom with walk-in showers, regardless of their pay source. Common spaces and amenity space will increase as well as the availability and proximity of parking to our various levels of care.  

Construction of Phase 1 began in March 2017 and is expected to be completed by March 2018. The master development is expected to be completed in 5 to 10 years.

Eben Ezer Lutheran Care Center, (970) 842-2861
Elisabeth Borden and Gavin McMillan
Elisabeth Borden, Principal
Eddie O'Shea, Research Analyst
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