Colorado Real Estate Journal - March 18, 2015
Even though residential and commercial real estate in Colorado are grabbing headlines with construction ramping up after the Great Recession, developers and (senior living) operators are not overlooking senior living. With more than 10,000 baby boomers turning 65 every day, the demographics are clearly shining on the senior housing market segment. According to the American Seniors Housing Association, 5 to 8 percent of boomers will opt for seniors-only multifamily housing in the future. With 76 million Americans born between 1946 and 1964, that equates to 6 million boomers needing generation-specific housing, classified as residential settings, with a minimum age requirement – usually 55 – in five categories: senior apartments, independent living, assisted living, skilled nursing care and continuing care retirement communities (with memory care available in assisted living and skilled nursing). The Colorado Department of Human Services touts that the state has one of the fastest growing aging populations in the U.S. In the year 2021, there will be more than 1.35 million adults age 60 years and older in Colorado, and from the years 2011 to 2021, the number of older adults in the state will increase 54 percent. Favorable demographics are not the sole driver for developers and operators of senior living to push forward on new offerings. Other factors include historically low construction loans, banks easing credit, and stock portfolios and homeowner property values recovering to the point where many seniors may want to cash in on their equity and downsize to a more manageable senior living accommodation. In Colorado, developers and senior housing providers are seeking an edge by providing unique offerings, such as specialized memory care, sustainable building practices and ancillary services that will continue to break down stereotypes and preconceptions of what senior living offers today. Brookdale Senior Living, one of the largest operators of senior living nationwide, expanded its footprint and offerings in Colorado by renovating and expanding its Sterling House and Clare Bridge Fort Collins locations. As part of the upgrade, Brookdale added memory care assisted living apartments. Rocky Mountain Health Care Services is renovating a 76,000-square-foot building in central Colorado Springs – the old “Eisenhower Hospital” – to house an innovative senior care program called PACE (program of all-inclusive care for the elderly); a 30-bed facility for seniors who have suffered brain injuries; and an assisted living residence. With the renovation, the organization will double its PACE program capacity. In south metro Denver, Wind Crest is in the midst of expansions. McHenry’s Crossing opened in November 2014 with 102 independent living apartments, and amenities such as indoor/outdoor dining, a movie theater, bistro, a classroom and satellite fitness center. Parry Landing, a 74-unit apartment complex, is currently under development with an anticipated May 1 opening. Amenities include a tavern, satellite hair salon, library and business center. Also under development is Highline Overlook with 29 apartments, a 240-seat auditorium, banquet room, satellite fitness center, and restaurant and lounge. In 2014, Greenwood Village-based Christian Living Communities restructured its company by creating a new 501(c)(3) parent company, Christian Living Ventures. This facilitated the creation of a new company, Christian Living Services, a sister company of CLC, to work with nonowned communities through consulting services nationally, and work with for-profit developers to assist in the design and operation of new communities. The parent company, CLV, was established to allow for growth through the acquisition of single-site senior living communities that choose to affiliate with a larger organization. It also allows CLS to expand operations to include third-party management of nonowned communities. In Denver, Eastern Star Masonic Community opened the Mary Barry Building in November 2014, which added 64,000 sf of living space, 48 assisted living apartments and a 20-unit memory care wing to its existing 42 assisted living rooms and 58 patio homes. Amenities include an exercise room, physical therapy room, exam room, beauty salon, theater, private dining room, library and computer room and a chapel – all on a 19-acre park-like campus. The expansion in senior living is not limited to the Front Range. Augustana Care is partnering with Eagle County to build the 64-unit Castle Peak Senior Care Community. The 62,000-sf project includes skilled nursing, assisted living, transitional care and memory care apartments. Currently, there is no full-service senior housing provider in that area, and many locals had to leave the area to find a complete offering of housing services. In rural Brush, change is in the wind for senior living. Eben Ezer Lutheran Care completed many interim upgrades – roofing, heating, ventilation and air conditioning, kitchens and more – and it is ready to unveil significant long-term campus redevelopment plans as well that will include assisted living memory care apartments and independent living cottages. Both offerings are much needed in northeast Colorado. As senior living developers and operators know, it is critical to convey a noninstitutional look throughout the building’s design and finishes, tailor spaces to meet the demands of seniors who want to keep fit and allow individuals the chance to age in place. Today’s seniors – and we know the boomers will take this to a new level of selectiveness – have a mindset about what they want in retirement communities. As we are seeing in Colorado, projects must be well conceived, well located and well operated to meet this demand.