2019 LARGEST PROVIDERS ARE THE LINES BLURRING IN SOME SENIOR LIVING CATEGORIES?


The divisions in types of senior living communities may be becoming a little less finely drawn, as both senior living companies and general residential developers eye the most demographically promising market: Active adult, or 55+.


The 2019 Builder 100 list, where Builder magazine tracks the homebuilding industry’s biggest players, tells the story: Nearly half the builders on the list are in active adult or 55+ market, a “sea change,” according to the magazine.


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Such 55+ communities don’t offer the range or inclusiveness of services and programs in independent living, for instance, but some of these services are starting to overlap.


Solvere Living saw the blurring lines and the opportunities this offered when it entered the active adult space, says Kristin Kutac Ward, president and CEO, in an email interview.


“We have found that there is very little difference between what independent living residents and 55+ residents really want,” she wrote.


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“They want social connection and maintenance-free living. The culture and employees have to exemplify service and hospitality, just as all levels of living require nowadays.”


Solvere recently opened Aspire at Carriage Hill, an independent living community with 148 one-and two-bedroom residences in the Richmond, Va., area. While the community has extensive services and fitness and recreation offerings, it’s next door to Acclaim at Carriage Hill, a 55+ community, and Aspire residents have access to many Acclaim features.


Food Service 4%


“The term ’55-plus’ is more appealing for many older adults than ‘independent living,’” Ward wrote, because it “indicates to them they will have more control over decisions—such as à la carte fees versus being all-inclusive.”


12%


“Age is a state of mind,” she continues. “We aren’t seeing so much age being the differentiator, but the frailty of the residents and prospects.”


12%


6% 4% 3%


17% 22% 19% 4% 22%


6% 4% 3%


17% 34%


Where 55+ meets middle market Having more options and flexibility appeals in a time of static


penetration. But 55+ also could also hold solutions to the affordability challenge. This was pointed out by Eclipse CEO Kai Hsiao, who told Senior Housing News in May that he came away from the NIC Middle Market Investor Summit with this thought: “I do think that the middle market is being somewhat addressed by the 55-plus product. I just don’t think the 55-plus product knows that yet.”


23% 28%


Unpacking that concept further in an interview with Senior Living Executive, Hsiao notes that the typical 55+ price point falls below that of independent living. If 55+ can offer a few of the lifestyle perks of independent living, 55+ residents may be able to fill in other gaps with smart technology and home health care services.


“We’re seeing much more crossover” between 55+ and independent living, such as 55+ designing with more gathering


24 SENIOR LIVING EXECUTIVE JULY/AUGUST 2019


28% 19%


22% 4% Summer 2018 Summer 2019 12% 4%


INVESTOR INTEREST RISES FOR ACTIVE ADULT


Investors saw bigger opportunities in active adult and less opportunity in nursing care compared to Summer 2018.


6% 4% 3%


17% 19% 23% 28% 34% 23%


Source: CBRE Group U.S. Seniors Housing & Care Investor Survey, Summer 2019


Independent Living Assisted Living Active Living Nursing Care CCRC/LPC Memory Care


28%


Independent Living Assisted Living Active Living Nursing Care CCRC/LPC Memory Care


28% 4%


28% 34%


Independe Assisted Li Active Livin Nursing Ca CCRC/LPC Memory Ca


and social areas. “Fifty-five plus may not be serving meals, but they’re building so they have common areas that can be converted if need be.”


While those branching into the 55+ market can realize efficiencies by centralizing many back-office operations, many senior living leaders caution that some factors and services simply can’t be transferred. The shift may be most difficult for those entering from multifamily. Marketing is one of the biggest hurdles, Hsiao says: “Selling for seniors is different. There are different skills required.”


–by Sara Wildberger


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