Seniors Housing in America: Lessons Learned

Transcription

1 Seniors Housing in America: Lessons Learned Patricia G. Will Founder and CEO Belmont Village Senior Living Belmont Village Hunters Creek, Houston Belmont Village Turtle Creek, Dallas

2 Seniors Housing in America: An Overview 2

3 Demand Drivers Age 85+ population cohort highest growth rate: projected 230% vs. 42% general population through year 2050 Projected increase in Alzheimer s Disease (32% of seniors age 85+ have AD today) Rise is number of centenarians: 171,000 in 2015 will grow to 834,000 by Increasing life spans Healthier lifestyles Better health care 85 is the New 65 Merle Phillips, age 108, and friends Belmont Village Geneva Road, Chicago 3

4 2030: Meteoric Growth Rate in Age 85+, Our Market MAIN EVENT WARM UP LULL WORLD WAR II Source: NIC MAP 3rd edition 4

5 Key Metrics Seniors Housing Skilled Nursing Units 538, ,000 Occupancy 90.2% 88.5% Construction vs. Inventory 3.9%.6% Annual Rent Growth 2.4% 2.5% Penetration Rate 10.2% 10.8% Source: NIC Map Monitor 1Q15 5

6 6 Belmont Village Overview

7 My Story 1980s - mid-1990s Professional roots in medical development 1994 Mother-in-law diagnosed with dementia, residential memory care not available at the time Due diligence on senior housing industry 1997 Co-founded Belmont Village Senior Living Mother-in-Law Josephine Will; Memorial Hermann, The Woodlands, Texas 7

8 The Launch: Belmont Village West University Create a place where I would want to be Manage frailty while fostering independence Proximity to the Texas Medical Center is key COMMUNITY SNAPSHOT Belmont Village West University, Houston Opened November ,000 SF 153 apartments for Assisted Living and Memory Care St. Luke s Geriatric Health Center located on-site Belmont Village West University Grand Opening, Nov. 14,

9 Ages of Belmont Village First Age Second Age Third Age Chicago San Jose, CA Thousand Oaks, CA 9

10 University Medical Collaboration Guides Programs USC Davis School of Gerontology Leadership, Longevity University of Texas Health Science Center, Texas Institute for Rehabilitation & Research Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston UCLA Semel Institute for Neuroscience and Human Behavior, UCLA School of Nursing Vanderbilt University Northwestern University with Rush Hospital, Chicago Physical rehabilitation, seniors as consumers Senior dining and nutrition Alzheimer s and memory research, practicum for geriatric nursing Memory care research Alzheimer s care research 10

11 Product Mix Senior Apartments Independent Living Assisted Living Alzheimer s Disease Nursing Home Age-restricted Multi-family amenities Active, mobile Lifestyle activities No support Private pay Healthy, but frail Selected activities Daily living support Need-driven Private pay Belmont Village Communities (for rent) Cognitive impairment Specialized care required Mild to medium acuity Private pay Continuing Care Retirement Communities (for sale) Ill and frail Full medical care required Government reimbursed 11

12 What Makes Belmont Unique? Mixed use buildings in complex settings. We manage what we own. Full continuum under one roof IL/AL/ALZ with profound benefits for residents: couples can continue to live together. High level of hospitality with clinical underpinnings. Belmont Village San Jose/ Santana Row Employees among the highest tenure in the industry: 39.2 months

13 Belmont Village Today Integrated developer, owner and operator of top tier independent living, assisted living and memory care communities 2,811 employees with 70 professionals at Houston HQ $1.5 billion in assets $200 MM in revenues 24 properties with 3,400+ units, all operated by Belmont and co-owned by Belmont with institutional partners Three communities in development One community under construction in Mexico City 13 13

14 Case Study: Belmont Village Westwood A Retirement Community for UCLA 14

15 A Retirement Community for UCLA What they wanted: Site within one mile of campus Buy-in CCRC, majority IL 400 units What they got: Site within one mile of campus For-rent CCRC, fully licensed IL, AL, ALZ 176 units UCLA Campus Belmont Village Westwood 15

16 Belmont Village Westwood: Long Time in Making Single family $1MM homes Condo Church Common entrance, one curb cut Wilshire Blvd Contract Site #1 UCLA Find RFP Site #2 and selection Ground lease With WUMC N hood and DRB approval Project Approval Construction Starts Grand Opening Broke even in 4th month 100% Occupancy August

17 Value Creation at Belmont Village Westwood The community opened 3Q09 and stabilized (at 100%) 4Q11, a remarkable result during the recession. During its first year, it generated operating income of $6.6 MM. Since then, income has grown at a 9.5% compounded rate. 17

18 A building with intellectual richness Jane Adler, National Real Estate Investor A building with intellectual richness Jane Adler, National Real Estate Investor Ongoing teaching / research cooperation with multiple UCLA faculties Faculty/emeriti lectures at Belmont OSHER lifelong learning classes UCLA Healthcare 50+ lectures on health & medical topics UCLA Semel Institute & UCLA Center on Aging lectures and programs UCLA School of Nursing studies and events for gerontology nursing students Emmy Award-winning Belmont Village resident and retired CBS executive, Perry Wolff, lectures on his documentary films: Michelangelo. 18

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