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

Market Watch - October 2017

Late 2017 senior housing outlook from Marcus and Millichap
Senior Housing News 2017 Architecture & Design Awards
Recognizing the life of John Hachmeister, JHL Constructors
Openings and groundbreakings: Rocky Mountain Assisted Living, Cappella of Grand Junction, Sky Pointe, Frasier, Village Cooperative
New development profile: Balfour at Lavender Farms

Late 2017 seniors housing outlook from Marcus and Millichap



Marcus and Millichap recently released its Second Half 2017 National Seniors Housing Research Report, providing seniors housing performance data, as well as their outlook for seniors housing markets. The report can be downloaded from Marcus and Millichap here.  
Using NIC MAP data, Marcus and Millichap included this map indicating the top 10 seniors housing construction markets as of second quarter 2017. As is no surprise, the Denver metro area is one of those top 10 markets for new seniors housing construction, continuing a trend over the past few years.


The report provides the following “outlook” overviews for four segments of the seniors housing market: independent living, assisted living (including memory care), skilled nursing, and continuing care retirement communities (CCRC).  These are quoted directly from Marcus and Millichap’s report.

Independent Living:  Independent living construction remains elevated through the remainder of the year, but healthy absorption keeps occupancy above the 10-year average at 91.3 percent, down 40 basis points from one year ago. Steady demand assists in the average rent rising 2.6 percent this year to $3,101 per month.

Assisted Living:  An elevated pace of completions will weigh on occupancy, pushing down the stabilized occupancy rate 130 basis points to 88.5 percent this year. Rent growth will continue to strengthen, and the average advances 3.6 percent to $4,624 per month.
Skilled Nursing Facilities:  Occupancy continues its downward slide this year, falling 60 basis points annually to 86 percent. Operators must increase rates to keep up with rising healthcare costs, and a 2.6 percent increase will push the average daily rate to $311 per bed per day.

Continuing Care Retirement Communities: Strong demand pushes up occupancy 60 basis points from the end of last year to 91.5 percent. Rising occupancy encourages operators to increase average rent, which reaches $3,194 per month on an annual advance of 2.9 percent.
 

Senior Housing News 2017 Architecture & Design Awards

If you haven’t already applied, time is quickly running out to submit an application for the 5th annual Architecture and Design Awards competition sponsored by Senior Housing News.  Applications must be submitted by midnight on November 13, 2017.  For the fifth year, Elisabeth Borden is pleased to have again been chosen to be one of the judges of this national competition.

Senior Housing News describes the award program as follows: “…to recognize cutting-edge design, excellence and innovation in senior living. We’re looking to celebrate unique projects and companies that are improving the lives of seniors through innovative design. A team of expert panelists from the senior living industry will judge the entries, and the winners will be announced in December on Senior Housing News.”

There have been a number of previous Colorado winners, including: CityScape at Belmar in Lakewood (2016), Rosemark at Mayfair in Denver (2016), PowerBack Rehabilitation in Lafayette (2015), Balfour Riverfront Park in Denver (2015), High Mar Senior Community in Boulder (2014), and Village at Westerly Creek in Aurora (2013).  Villagio Senior Living of Broomfield was a runner up in 2016.

Eligible applicants include any senior living community that fits into one of the categories below that was constructed/renovated and completed from January 1, 2016 to present day. Projects completed after November 1, 2017 that do not have photographs, site plans, or floor plans, are urged by SHN to apply to the 2018 awards.


CATEGORIES
New Independent Living
New Assisted Living
New Skilled Nursing / Post-Acute Care
New Assisted Living
New Continuing Care Retirement Community (CCRC)
Renovation / Repositioning
Stand Alone Memory Care
Affordable Housing

Recognizing the life of John Hachmeister, JHL Constructors

This sad news from JHL Constructors on October 2nd:

Dear JHL Friends and Industry Partners,

It is with great sadness and the heaviest of hearts that we must inform you of the passing of JHL’s Founder, John L. Hachmeister, after a long and courageous battle with cancer. The immense strength he exhibited throughout his life was never more present than this past year through his daily fight with this horrible disease.

John was so important in the lives of so many different individuals and organizations; to his family, his dear friends, his JHL family of loyal employees, countless business associates in the Colorado design and construction community, and to many noble and charitable organizations.  John was not only the Founder of this company we hold so dear, but more than that he was a mentor to so many of us, and an amazing friend.

For those of us who have been fortunate enough to have him in our lives over the years, it is impossible to put into words just how privileged each one of us feels for the time we were able to spend with John.

Openings and groundbreakings

Openings


Rocky Mountain Assisted Living Thornton, a new, 16-unit assisted living and 16-unit memory care community, opened in October 2017. The general contractor is Creekside Development and the architect is MA Architects. The property is owned and managed by Rocky Mountain Assisted Living.
 

A grand opening ceremony was held on October 21, 2017 for Cappella of Grand Junction, a 40-unit assisted living and 26-unit memory care community. The architect was Rosemann & Associates, P.C and the general contractor was Bradbury Stamm Construction. The property is owned by Confluent Development, L.L.C. and managed by Cappella Living Solutions.
 

Groundbreakings


Resort Lifestyle Communities began construction of Sky Pointe Retirement Resort, a new 130-unit independent living property in Littleton, in July 2017. The property will be owned by Sky Pointe Retirement Community, LLC and will be managed by Resort Lifestyle Communities, LLC. The general contractor and architect is Cameron General Contractors. The property is expected to open in early 2018.
 

Frasier, a life plan community in Boulder that includes independent living, assisted living, memory care, and skilled nursing, began construction on a 98-unit independent living expansion in October 2017. This new independent living building is part of a larger master plan expansion that will later include a new arts and education building, an expanded wellness center, as well as extensive renovations of dining venues. The general contractor is Pinkard Construction and the architect is Hord Coplan Macht Architects.
 

Construction of Balfour at Lavender Farms, a 57-units assisted living expansion to the existing Balfour Senior Living campus in Louisville, began in October 2017. The general contractor is Brinkmann Constructors and the architect is DTJ Design. The property will be owned and managed by Balfour Senior Living. See their detailed profile following in this newsletter.

 

Real Estate Equities Development, LLC began construction of Village Cooperative of Fort Collins, a 52-unit, age-qualified, market-rate cooperative community with member buy-ins. The general contractor is Halcyon Construction and the architect is REE Architecture, LLC. The property is expected to open in 2018.
 

New development profile: Balfour at Lavender Farms, Louisville, Colorado




 
Who:     
Balfour Senior Living will be the developer, owner in partnership with AEW and operator of Balfour at Lavender Farms. The architect for the project is DTJ Design, and Brinkmann Constructors will serve as the general contractor.   

Where:           
1800 Plaza Drive, Louisville, CO - across the street from Balfour Retirement Community and the fourth community developed as part of Balfour Senior Living’s Louisville campus. 

What:            
Balfour at Lavender Farms will expand our continuum of care with an additional 57 assisted living units within 57,000 square foot community. The new assisted living building took inspiration from the modern farmhouse, pulling elements into the design such as stone buildings, front porch, barn doors, exposed reclaimed beams and metal roofs. The entrance will pull from the historical mine hoist foundations by incorporating stone walls and out buildings. Landscaping will introduce lavender throughout the property including within the south facing courtyard, with walking paths and a fountain. Common areas included great room, club room, activities, dining, fitness, salon and theater. Additional amenities include three meals per day, nursing care, 200 planned activities per month and private cars to take residents to appointments, church and shopping. Apartments will be 400 to 1,000 square feet and will feature kitchenettes with refrigerators and microwaves, solid surface countertops, tiled bathrooms and showers, washers and dryers in units and LVT in the living rooms. 

When:            
Construction is expected to begin October 2017 - Opening Spring 2019

Contact:
For development inquiries, please contact Hunter MacLeod at 303-926-3012 and for more information on leasing, please visit our website at www.BalfourCare.com.

 
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