Assisted-living facilities in the region say they are seeing strong and growing demand. The entire senior-living sector has suffered somewhat during the economic downturn, but not to the extent that other types of real estate did. Overall it”™s been holding up pretty well, according to industry participants.
Rates for a private apartment with assisted-living services can start from $3,000 a month and higher. The price has remained stable or slightly up in recent years. Occupancy rates for major facilities in the area remain well above mid-90 percent and some even have a waiting list this year.
And this summer is shaping up to be a very busy time, with many facilities responding to inquiries and welcoming new residents.
”˜Bullish about the future demand”™
Tom Grape is the CEO of Wellesley, Mass.-based Benchmark Senior Living, which has two facilities in Fairfield County, Conn. “Our two existing communities in Fairfield County are virtually 100 percent occupied,” he said. “We are doing very well. We are pursuing a number of different, new acquisitions and development opportunities including in Fairfield County and Westchester County,” he said.
The company is completing a deal to buy a continuing care retirement community in Stamford called Edgehill.
Demand in the industry is generally strong, Grape said. “We think the future demand looks promising, with the question mark, of course, of what the economy is going to do. If the economy remains stable or even modestly growing, we feel very bullish about the future demand.”
Benchmark assisted-living facilities start at $3,500 a month for a small apartment including an array of assisted-living services.
He said the operating performance of the whole senior-living sector has held up well over the last three or four years despite economic difficulties. “We certainly suffered a little bit, but it wasn”™t like the other types of real estate.
“Consumers are continuing to be cautious about big-ticket decisions including senior living because of the economic difficulties we just went through and because of the uncertainty going forward. But nevertheless, the more demand-driven senior living is holding up pretty well, because if mom has Alzheimer”™s, you can”™t wait until your portfolio recovers to deal with that.”
No vacancies, despite recession
Atria Senior Living also reported strong demand for its assisted-living communities. John Hartmayer, a regional vice president at Atria, oversees four Westchester communities: Atria Briarcliff Manor in Briarcliff, Atria Woodlands in Ardsley, Atria Rye Brook in Rye Brook and the recently opened Atria on the Hudson in Ossining. He said the facilities are doing “extremely well.”
“We are happy with our occupancies and we are happy with the way the business is going overall.” He reported mid-90 percent occupancy rates at the facilities. The newly opened Atria on the Hudson in Ossining is about 50 percent occupied, with more residents moving in this summer. The residence units for seniors with memory loss ”“ which Atria calls “life guidance units” ”“ are especially popular, with no vacancies, he said. The growing emphasis on memory care and strong demand for such residence units appear to be one of the ongoing trends.
“The economy has not affected us that much. It has been very steady. We are pleased with the way things have gone in 2011 and over the last couple of years,” Hartmayer said. One thing relatively unknown about the industry, he added, is that assisted living can be more affordable than many people realize. “Some residents use long-term care insurance to help pay for the monthly cost. There is also a veteran”™s benefit out there.”
Debbie Corwin, director of community relations at Esplanade at Chestnut Ridge in Rockland County, said the assisted-living facility has some availability for studios. “But right now, I have a waiting list in my other types of apartments. We”™ve really been very, very consistent.”
At Esplanade, rates start at $3,120 a month for a private room and $2,250 a month for a shared room.
While the demand remains strong, one change she noticed from potential residents is that finances are becoming a more pressing matter. “I am hearing more about financial concerns. From just about every call I get now, 80 percent of the people will talk to me about the financial aspect as soon as they call. That”™s the big difference that I have seen from when I first started a few years ago.”
The rise of private ownership
Steven Laufer, president of Promenade Senior Living, which owns Esplanade at Chestnut Ridge, said there are some new developments going on in the region, primarily in Westchester. He also noted a trend away from nonprofit operators in favor of private owners that have more resources to invest in their facilities.
One new facility in the area is The Kensington, a White Plains-based assisted-living facility scheduled to open in late July at the medical cluster on the East Post Road. The community has 87 units. Fifty-three will be for assisted living and 34 will be for residents with memory loss.
Tiffany Tomasso is founding partner of Reston, Va.-based Fountain Square Senior Living, the developer of The Kensington. She said a unique feature there is the two separate areas for memory care, with one dedicated for seniors with advanced stages of Alzheimer”™s and other forms of dementia. “We can do some very specific programming and support services for the residents and family.”
And one facility under development is The Club at Briarcliff Manor. The continuing care retirement community with 325 independent-living units is scheduled to open in Briarcliff Manor in late 2013 or 2014. “We are in pre-sales right now,” said Matt Phillips, founder and CEO of Northbrook, Ill.-based Integrated Development Group, which is developing the facility.
He said one industry trend he sees is the demand for facilities with higher-quality finishes.
“The older-generation products were more institutional and didn”™t have luxury, high-level finishes. Higher-quality finishes are becoming the new norm.”
