Assisted Living, New Construction

[Sasan Nemabakhsh]

Hello: 

I'm working on a new construction in Atlanta MSA for the end use of Assisted Living.  If you have experience in this arena, would appreciate your input. Some concepts are likely to be similar to multifamily/hospitality so if you also have experience with such new construction, feel free to add to the conversation. Thanks in advance. 

- For new construction, what is a reasonable construction cap rate?

- In terms of market due diligence, what is an optimal target population, what percentage of such demographic should be 50+(or if that needs to be of higher age), and what about net worth/income? **calculated based on 20 miles radius!?**

- With regards to occupancy, how many years does it take on average to stabilize the property? I have seen some new construction at 60s occupancy after a year. Also heard that it may take upto two years. your take? 

- Do you have a spreadsheet that you can share that would help with construction analysis?

- Have you worked with specific source of funding that would be of interest for commercial healthcare?

- What percentage of total revenues do third party operators typically charge? 

- Any third party operator/management company that you can recommend for this market?

- Any construction company to recommend with special expertise in this type of construction? 

Thanks in advance for your time and attention to details.