All Forum Posts by: Jaden Ghylin

Latest update:  We've got a proven operator (http://www.oxfordmgmt.com/senior-living-properties/)  lined up to run this place and help direct the conversion.  They will manage the architect, builder, designer, etc and will put together the marketing, sales, and leasing teams.  They currently manage 13 facilities in MN and most of them are conversions rather than new builds.  The operator is very excited about the building, the land, and the location and believes that it will be very good at attracting tenants due to the natural beauty.  The demand study looks strong.  We used Maxfield Research for the demand study.  Proforma was done by an owner of a 90 unit assisted living building in a nearby suburb and it shows a 20% cap rate when the facility is 94% occupied based on the final project of $5mln.  Things are looking good and falling into place.  Next steps, talk to city about zoning, building codes, and sewer hookup, contract architect and interior designer, complete full market study, bring operator under contract, and raise some equity!  

Stay tuned....

-Jaden

@Vernon Miller

Thanks for the encouragement.  I've talked to some assisted living operators locally and they agree.  We are in the process of getting a feasibility study done to prove this out.  Everything I've seen indicates that this should be a winner.

-Jaden

@Jim Adrian

Thanks for the tip.  I walked the building with a builder of assisted living facilities and he thought the bathrooms could be converted with minimal effort.  

-Jaden

@Karen Margrave

Thanks for the input.  I think this property offers a lot of features that an in-town location cannot. The hospital is a 9 minute drive.  Nearest fire station appears to be 7 minutes away at normal speeds. We would provide a shuttle service to get people to church, doctor appointments, etc.

-Jaden 

We are looking to convert a 60 unit hotel to assisted living and so far it looks like this property will work.  The only concern is that it is between 3 cities (Albertville, Monticello, Otsego, MN) about 5-10 minutes between each in a Suburban area of the Minneapolis metro.  The area is growing and housing developments are going up, but this hotel is definitely not "in-town".  It is on 33 acres and has a lot of features that make it attractive for assisted living including views of the Mississippi river valley, 33 acres of land with walking path, indoor pool, beautiful flower beds and landscaping.  It's a very beautiful, natural setting with deer, turkeys, birds, and butterflies on the property.    With all of that said, our concern is that it is not in a town.  Is that a deal killer for assisted living?  I'd appreciate any insights you may have.

http://www.loopnet.com/Listing/19761224/10990-95th...

Regards,

-Jaden

@Joel Owens

So how does this work?  Does the county/city kick in funding at closing that goes towards the down payment?  I'm interested in how the mechanics of this work.  

-Jaden

@Joel Owens

I seem to read a lot of news articles on new assisted living projects being financed with Tax Increment Financing (TIFs).  I don't think I fully understand how this works or how to get TIF financing.  Has anyone here use TIFs?

-Jaden

@Patrick Liska thanks for the link.  We would bring in a national operator to run the facility, so we are just looking to ensure that the building has the proper facilities and layout.  Does anyone have experience with a larger assisted living facility layout?

Regards,

-Jaden

All, could use some opinions on this.  We are looking at converting a 60 unit hotel into an assisted living facility.  The rooms are mostly the normal studio style hotel room.  Do assisted living residents require a separate bedroom and living room or is a studio setup acceptable?  A hotel seems like a pretty ideal building to convert since it has the bedrooms, bathrooms, "cafeteria", common rooms, and dining space already built-in.  Anything else that might be missing from a hotel that assisted living would require?

Thanks!

-Jaden

$2.3mln last time I looked.