If you’re in the process of planning a new senior housing development, you’ve probably established a clear set of goals for your property.
Your long-term objectives may include items like increasing your share of the assisted living market, using capital from your new property to expand into other markets, and similar items.
But when it comes to short-term goals, more than likely, one of your benchmarks for success is capital recovery.
Even if you’re using a capital-light business model, you still may have invested a sizable chunk of your hard-earned assets into your senior housing development.
And before you can realize ROI or reinvest that capital into other ventures, your first step is recouping your initial investment.
If you’re ready to remove obstacles that can lengthen your capital recovery timeline, keep on reading. In this article, we’re sharing why capital recovery can be risky and how you can prevent unnecessary obstacles so you enjoy success…
Capital Recovery May Become More Risky
If you watch for the headlines that impact your senior housing development plans, then perhaps you’ve seen a recent CBRE report—the U.S. Seniors Housing Development Costs Report.
According to Senior Housing News, this report revealed that…
The total cost of a senior housing development delivered in 2017 or scheduled for delivery in 2018 averaged $256,000 per unit, or $283 per square foot…
What’s more, Senior Housing News quotes CBRE’s Jeanette Rice, who stated, “We do expect development costs to continue to rise. We know that they are trending that way.”
In other words, you can’t rely on that $283-per-square-foot baseline to predict your expenses. Rising prices can force you to share risk with other stakeholders or shoulder those extra costs yourself.
Either way, here’s the bottom line: in the future, there’s a chance your senior housing development’s capital recovery burden will grow.
How to Shorten Capital Recovery for Your Senior Housing Development
Even with strong market demand, recouping your investment will take time.
However, at Bild & Company, we’ve seen senior living operations face a significant roadblock between their investment and simply breaking even.
These organizations didn’t have a strategic plan for filling up their apartments.
Even if top-line growth is currently the least of your worries, you can’t wait until construction is practically complete to articulate how your property will…
- Gain a competitive advantage over other options in the market.
- Find and train the talent necessary to increase occupancy.
- Cultivate relationships with key referral sources in the community.
- Create public awareness of your new senior housing development.
- Secure deposits and ensure apartments fill up.
Regaining your investment in a timely manner (and avoiding financial hemorrhaging) depends on crafting a master strategy now.
Empowering Your Senior Housing Development to Grow
At Bild & Company, we’re here to help your senior housing development stay on track for capital recovery goals.
Our mission is to remove any obstacles that would lengthen the time between your grand opening and the day you hit break-even…or even begin to realize ROI.
Our team of senior housing experts will tailor their expertise for your properties’ unique needs and empower you to…
- Communicate what makes your development distinct in its local market.
- Hire the talent you need to increase deposits and onboard new team members.
- Execute a defined plan for building awareness in your community through events and outreach.
- Get in touch with the digital marketing expertise you need for an online presence.
- Stack the odds in your favor for increasing occupancy.
To discover how we can help you fill up apartments, reach out at 1-800-640-0688 or get in touch online.
