Senior Living Services
Affinity-based Senior Living Communities: A Timely and effective Addition
to a Church or College Campus.
We are witnessing the future today. Over 10,000 people are turning 65 every day… and will continue to do so for the next twenty years. A child born today has a 50% likelihood of living to be one hundred years old. Growing old- 80 or older- is now the norm and the elderly are healthier; but mental health is becoming the top health issue. We will age but may not be fully cognizant of the last several years of our lives.
Only about 3% of seniors can be accommodated in existing senior care facilities. Over the next decade that percentage will drop even lower, as the aging population outstrips the inventory of senior centers.
How will they be cared for? Who will do it? More and more families are seeing children taking care of their parents, and even their grandparents. Meanwhile they may still have children at home themselves. This “Sandwich Generation” is being asked to carry more and more burden in care-giving.
Additionally, non-profit as well as faith-based communities are in higher demand by seniors than secular, for-profit facilities. And the rewards of service and ministry do bring significant benefits as well.
Benefits to the participating campus:
1. Consistent, growing revenue stream in an era
of ever-tightening resources.
- Helps pay off debt.
- Expands ministries or programs.
2. Increasing connectedness to existing and
future giving base.
- Demonstrates a tangible and directly
applicable service to the benefactors,
increasingly facing their own health issues
… a real return for their support.
3. Tremendous service to the community.
Based on recent independent appraisal reports, an affinity-based 100-unit senior living community can achieve $2,500,000 in annual Net Operating Income upon stabilization. Participating in such as strong, rewarding community can provide continuing and growing endowment to a campus in an era of tightening revenues. We encourage you to learn more about college and church affinity-based senior living communities and how one may well add ministry, academic and financial benefits to your campus and community.
Affinity-based Senior Living Communities are among the strongest investment opportunities available anywhere. These are demographics-driven, need-based, and financially sound.
1. Demographics- driven:
The market opportunity is immense. The Baby Boomer generation is aging and the first wave of Boomers is now reaching age 65. Over ten thousand people are turning 65 each day… for the next 20+ years. This generation encompasses over 78 million that will need increasing services and care. In less than 6 years, the number of Americans aged 85 or older will increase by 33%; and, babies born today, have life expectancy of 50% of them reaching 100. In short, seniors are living longer, healthier lives.
The senior care sectors of Assisted Living and Memory Care are need-driven sectors within the senior living/ retirement market. While Independent Living is in demand, it still is a lifestyle option, not necessitated by health demands; therefore, we have chosen to focus immediately on the need-driven sectors primarily- AL and MC.
Assisted Living (AL) is the nexus of independent lifestyles and health care needs. Generally, AL is lightly governed by state licensing requirements and few states have strict Certificate of Need (CON) constraints on the ability to develop ALF’s. Specific locale market demand is the major criterion for development.
Memory Care (MC), covering the numerous categories of care for dementia and Alzheimer’s, is the fastest growing area of health care.
Skilled Care Nursing is at the other end of the spectrum of care, but dominated by Medicare and Medicaid government rules, regulations and reimbursement limits; many if not most of the residents of Skilled Care facilities are actually more suited to AL or MC levels of care. And, lastly, Hospice serves those in their final needs through loving care.
3. Financially sound:
Senior Living Communities offer excellent investment returns and exceptional security. Based on recent Cushman & Wakefield appraisal reports, an affinity-based 100-unit senior living community’s annual Net Operating Income can achieve $2,500,000 upon stabilization. Plus, both the industry and our projections indicate debt coverage ratios in 1.6 to 1.9 and higher, significantly better than most commercial, retail or multi-family investments. Additionally, the demographics of the senior population, as the fastest growing segment as well as the rapidly growing need for care for the longer lifetimes expected, provide a continuing and intensifying market for these facilities. Further, seniors are very unlikely to move; therefore once they make the decision to leave their homes they do not want to consider moving again (compared to younger people who will move often for the newest apartment offering).
Alpha’s plan provides them a continuum of services and care so they do not have to worry about health needs requiring relocation, except for the comparatively rare need for skilled nursing care. Additionally, the industry self-limits itself by relying on market research that evaluates market demand as part of its feasibility; therefore once the SLC is operating in the locale the facility is somewhat similar to a franchise for the area.