Campus Health Care Group sets date for California facility Campus Health Care Group (CHGG), a Scottsdale, Ariz.-based developer of seniors housing, has set a completion date for its first California facility for March 1998. Construction started in August 1997 on the $11.5 million assisted living facility, located in Aliso Viejo, Calif., in the sprawling Orange County submarket. The project will be called Aliso Laguna Village. The 70-unit complex will have 56 private and 14 semi-private suites, ranging in size from 308 to 360 sq. ft., on a 3.35-acre site. In addition, Aliso Laguna Village will have a new 30,000 sq. ft. medical office building adjacent to its assisted living facility. Kaiser Permanente has already committed to 90% of the building's available space upon completion. CHGG has also contracted with the University of San Diego and San Diego State University to further its Alzheimer's research within Aliso Laguna Village to stimulate and care for its residents. CHGG plans to expand its seniors housing and academic combination in Southern California, Arizona, Nevada, Colorado, Texas and Idaho.
Fountainview at College Road pre-leased at near 100% capacity Ramapo, N.Y.-based Northern Metropolitan Organization, a non-profit affiliate of Monsey, N.Y.-based Northern Health Care Network, has reached near 100% pre-leasing for Rockland County's first seniors independent living community. The facility is slated to open in fall 1998. The complex is situated on 10.3 acres with 155 units, consisting of 109 one- and two-bedroom residences and 46 assisted living units, allowing residents to age in place. The independent apartments will be locatedin three interconnected, three-story buildings designed by Hackensack, N.J.-based Dahn & Krieger Architects. Castle-American Construction of Teanack, N.J., has been named the general contractor. The project cost was not disclosed.
Kapson Senior Quarters Corp. starts $77 million in projects Kapson Senior Quarters Corp. (KSQC), a seniors housing developer based in Woodbury, N.Y., has started two assisted living projects totaling $77 million in building costs. In November 1997, KSQC started Seniors Quarters at Muhlenburg, a new $14 million, 125-unit facility, located in Muhlenburg, Pa., that will encompass 85,000 sq. ft. of space. The complex will have 37 studio, 72 one-bedroom and 16 two-bedroom residences upon completion in fall 1998. The facility is a joint venture with the Muhlenburg Hospital Center and shows that many seniors housing developers are favoring direct relationships with healthcare providers. KSQC will operate the facility and Allentown, Pa.-based The Norwood Co. is serving as construction manager. Also, in its debut into the Manhattan marketplace, KSQC is redeveloping a 22-story highrise, at a cost of $63 million. Seniors Quarters at 86th Street will consist of 214 units offering studio, one- and two-bedroom floor plans. Besides the studios, the floor plans range from 600 to 1,200 sq. ft., and rents are in the $4,000 to $7,000 per month range. Redevelopment started in December 1997 and occupancy is expected to begin in late 1998.
Health Care Property Investors spends $120 million for facilities Health Care Property Investors (HCPI), a Newport Beach, Calif.-based healthcare REIT, purchased 12 properties for $120 million. The acquisitions include six assisted living facilities, an acute-care hospital and five medical-office buildings. The properties are located in five submarkets including San Diego and Austin, Texas. In 1997, HCPI purchased $225 million in healthcare facilities vs. $120 million in 1996.
ASHA's report shows progress for a healthy seniors housing market Washington D.C.-based American Seniors Housing Association (ASHA) has issued reports that reflect a positive acquisition and absorption market for the seniors housing industry. In a joint venture between ASHA and Capital Research Group, a report entitled 1997 Seniors Housing Acquisition Markets summarizes the results of 157 sales transactions from 1995 to October 1997. For the 12 congregate housing deals in 1997, average unit price was $84,784 at $82.83 per sq. ft. with a net operating income (NOI) of 37.8% and a cap rate of 11.07%. As for assisted living product, there were 18 sales transactions in 1997, averaging $74,809 per unit at $145 per sq. ft. with an NOI of 35.8% and a cap rate of 12.19%. In another report called Seniors Housing Absorption Study: 1990 to 1997, the groups noted results from a survey of 221 seniors housing properties opening since 1990. The report shows an average time for reaching stabilized occupancies was lowest in assisted living facilities (12 months), followed by congregate residences (33 months) and CCRCs (50 months). Copies of these reports and others can be obtained by calling ASHA at (202) 974-2000.
Associate Editor Randy Henry covers the seniors housing news beat for NREI. He welcomes comments and news items via e-mail to [email protected]