Morningstar in Lakewood, CO hired Development Advisors to determine the development possibilities for a 5.77 acre site that was zoned office. The challenge was to sell the property for the highest possible selling price. In the development phase, Development Advisors oversaw finance, design, and construction for an Assisted Living and Memory Care Community. DA completed the project on time and on budget, transitioning the building over to 3rd-party property management company.
Assignment Highlights
Undertook a campaign that included a highest and best use study, architectural planning, civil planning, municipal investigation, senior housing market research, neighborhood meetings.- Identified and interviewed senior housing developers who might have an interest in the site.
- Selected MacKenzie House for the acquisition and development of a 100+ unit, assisted living project operated by MorningStar.
- Although the land was zoned for a future office building, Advisors quickly assessed that this was a poor future office site.
- Collaborated with two senior housing architects for ideas on the site’s possibility for multi-family housing.
- Determined, after considerable investigation, that the property’s Highest and Best Use was for senior housing. The initial market investigation suggested that the demographics were very strong and that there was no competition in the immediate trade area.
- Envisioned a senior housing project and completed the project definition, financial modeling, and proforma analysis.
- Acquired and entitled 4.5 acre site through local governmental authorities.
- Sourced and closed $18.5 million construction/mini-perm loan and $5.25 million equity investment. This process required a broad canvassing of the senior housing lender community in order to generate the most favorable terms possible for the borrower.
- Conducted RFP processes to identify and hire the best architect and general contractor to complete the project. These searches required extensive research and interviews of several candidates.
- Hired and managed relationship with outside party to conduct a full market study for the proposed community.
- Identified and interviewed senior housing management companies in order to hire the most appropriate 3rd party to manage the community.
- Managed and coordinated project team (architect, general contractor, property manager, and other consultants) in order to design and construct two buildings and associated sitework.
Results
- Negotiated a price that far exceeded what value would have been as an office site.
- Client believed that the proposed senior housing project (assisted living with some alzheimer units) had little risk and therefore contributed all of his equity as a joint venture partner with the opportunity for future income and profit upon the project’s completed sale.
- Successfully found excellent financing for the project as well as strong and seasoned financial partners..
- Completed project on time and on budget.
- Smoothly transitioned buildings from construction
