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Defying Conventional Wisdom: A Mixed-Use Intergenerational Housing Success Story Billy Pettit, Vice President
 
Snapshot <ul><li>Who We Are </li></ul><ul><li>The Project </li></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><li>Capitali...
Who We Are <ul><li>19-Year History in Senior Housing Industry </li></ul><ul><li>6 th  Largest Private Owner/Operator </li>...
Awards <ul><li>2008 Best Proposed Active Adult/Retirement Community </li></ul><ul><ul><li>Winner of the Gold Award by the ...
Vision: Create a Unique Product Directed at Specific Seniors Source: ProMatura Group, LLC
UNIVERSITY OF WASHINGTON SITE UNIVERSITY VILLAGE SHOPPING CENTER DOWNTOWN SEATTLE
Mixed Use Development <ul><li>Primary Focus was Senior Housing </li></ul><ul><li>Apartments: </li></ul><ul><ul><li>Natural...
The University – an Intergenerational Campus
 
Project Statistics <ul><li>2.5 Acre Site </li></ul><ul><li>226 Total Units </li></ul><ul><ul><li>123 IL/AL Units </li></ul...
Capitalization <ul><li>Equity: </li></ul><ul><ul><li>Joint Venture with Existing Development Partner </li></ul></ul><ul><u...
<ul><li>Intergenerational Living: </li></ul><ul><li>Shared Courtyard </li></ul><ul><li>Social Events </li></ul><ul><li>Gre...
Intergenerational Living <ul><li>Wii Bowling Leagues </li></ul><ul><li>Movie Night in the Courtyard </li></ul><ul><li>Comb...
Success: Development <ul><li>6-Parcel Assemblage  </li></ul><ul><li>Condo Building Holdout </li></ul><ul><li>3 Different S...
Success: Financial & Operational <ul><li>Who would have thought? </li></ul><ul><ul><li>Opened in Height of Recession: Apri...
Revenue by Component (TTM) Current Revenue % of Total Merrill Gardens - 69.8% $  5,471,693  69.8% The Corydon - Apartment ...
Occupancy Metrics Sources: NMHC; Dupre and Scott; NIC MAP; US Census  * Properties opened April 2009
<ul><li>Case Study for Intergenerational Living </li></ul><ul><ul><li>Student, Resident & Team Member </li></ul></ul><ul><...
Success: Business Model <ul><li>Complementary Uses are Important </li></ul><ul><li>Diversified Returns within a Single Ass...
Lessons Learned <ul><li>The Concept Works; Performance Speaks for Itself </li></ul><ul><li>Sister Project in Kirkland, WA ...
Questions
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Defying Conventional Wisdom: A Mixed-Use Intergenerational Housing Success Story (Billy Pettit) - ULI fall meeting - 102711

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Defying Conventional Wisdom: A Mixed-Use Intergenerational Housing Success Story (Billy Pettit) - ULI fall meeting - 102711

  1. 1. Defying Conventional Wisdom: A Mixed-Use Intergenerational Housing Success Story Billy Pettit, Vice President
  2. 3. Snapshot <ul><li>Who We Are </li></ul><ul><li>The Project </li></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><li>Capitalization </li></ul></ul><ul><li>Success Stories: </li></ul><ul><ul><li>Development challenges </li></ul></ul><ul><ul><li>Financial & operational </li></ul></ul><ul><ul><li>Community </li></ul></ul><ul><ul><li>Emergence of a new concept </li></ul></ul>
  3. 4. Who We Are <ul><li>19-Year History in Senior Housing Industry </li></ul><ul><li>6 th Largest Private Owner/Operator </li></ul><ul><li>57 Acquisitions (5,825 Units) </li></ul><ul><li>23 Developments (2,644 Units) </li></ul><ul><li>Vertically Integrated & Scalable Platform </li></ul><ul><li>Emerging Mixed-Use Portfolio (1,600+ units) </li></ul>
  4. 5. Awards <ul><li>2008 Best Proposed Active Adult/Retirement Community </li></ul><ul><ul><li>Winner of the Gold Award by the National Active Retirement Association </li></ul></ul><ul><li>2010 ULI Awards for Excellence Finalist </li></ul><ul><ul><li>One of seventeen finalists from over 170 projects throughout North and South America.  The only senior housing community to be recognized as a finalist. </li></ul></ul>
  5. 6. Vision: Create a Unique Product Directed at Specific Seniors Source: ProMatura Group, LLC
  6. 7. UNIVERSITY OF WASHINGTON SITE UNIVERSITY VILLAGE SHOPPING CENTER DOWNTOWN SEATTLE
  7. 8. Mixed Use Development <ul><li>Primary Focus was Senior Housing </li></ul><ul><li>Apartments: </li></ul><ul><ul><li>Natural progression from senior housing </li></ul></ul><ul><ul><li>Multiple options available: market rate, age-restricted, students </li></ul></ul><ul><ul><li>Strong market fundamentals </li></ul></ul><ul><li>Retail: “If you build it, they will come” </li></ul><ul><ul><li>Lost all but one tenant due to recession </li></ul></ul><ul><ul><li>Shifted focus to local businesses with established relationships in the community </li></ul></ul><ul><ul><li>Bonus: Located one block from University Village, the largest destination center in the region </li></ul></ul>
  8. 9. The University – an Intergenerational Campus
  9. 11. Project Statistics <ul><li>2.5 Acre Site </li></ul><ul><li>226 Total Units </li></ul><ul><ul><li>123 IL/AL Units </li></ul></ul><ul><ul><li>103 Market-Rate Apartments </li></ul></ul><ul><li>22,500 Square Feet of Retail Space </li></ul><ul><li>$71 Million Total Cost </li></ul><ul><li>$55 Million Tax-Exempt Financing </li></ul>
  10. 12. Capitalization <ul><li>Equity: </li></ul><ul><ul><li>Joint Venture with Existing Development Partner </li></ul></ul><ul><ul><li>Private Placement in 2006 </li></ul></ul><ul><ul><ul><li>$53.5 Million Raise </li></ul></ul></ul><ul><ul><ul><li>8 Property Portfolio </li></ul></ul></ul><ul><li>Debt: </li></ul><ul><ul><li>Tax Exempt Financing through WSHFC </li></ul></ul><ul><ul><li>20% Set Aside Units @ 50% AMI </li></ul></ul><ul><ul><li>78% LTC </li></ul></ul><ul><ul><li>Nonrecourse </li></ul></ul><ul><ul><li>All-In Rate 1.24%!!! </li></ul></ul>
  11. 13. <ul><li>Intergenerational Living: </li></ul><ul><li>Shared Courtyard </li></ul><ul><li>Social Events </li></ul><ul><li>Greenhouse and Gardening </li></ul><ul><li>Bocce Court </li></ul><ul><li>Walking Path for Exercise </li></ul><ul><li>Outdoor Dining </li></ul>
  12. 14. Intergenerational Living <ul><li>Wii Bowling Leagues </li></ul><ul><li>Movie Night in the Courtyard </li></ul><ul><li>Combined Happy Hours </li></ul><ul><li>Pep Rallies </li></ul><ul><li>Dining Room Open to all Residents </li></ul><ul><li>Concierge Services for Apartments </li></ul>
  13. 15. Success: Development <ul><li>6-Parcel Assemblage </li></ul><ul><li>Condo Building Holdout </li></ul><ul><li>3 Different Sets of Zoning Guidelines </li></ul><ul><li>Existing Creek Running through Site </li></ul><ul><li>SDOT Right of Way </li></ul><ul><li>Grade Change </li></ul><ul><li>NIMBY-ism </li></ul>
  14. 16. Success: Financial & Operational <ul><li>Who would have thought? </li></ul><ul><ul><li>Opened in Height of Recession: April 2009 </li></ul></ul><ul><ul><li>Recessionary Impacts were Very Real </li></ul></ul><ul><ul><ul><li>Concessions </li></ul></ul></ul><ul><ul><ul><li>Lease-Up </li></ul></ul></ul><ul><li>Two + Years Later… </li></ul><ul><ul><li>Occupancy: </li></ul></ul><ul><ul><ul><li>Senior Housing: 99%+ </li></ul></ul></ul><ul><ul><ul><li>Apartments: 99%+ </li></ul></ul></ul><ul><ul><ul><li>Retail: 100% </li></ul></ul></ul><ul><ul><li>Distributions on par with underwriting </li></ul></ul>
  15. 17. Revenue by Component (TTM) Current Revenue % of Total Merrill Gardens - 69.8% $ 5,471,693 69.8% The Corydon - Apartment - 20.3% $ 1,590,591 20.3% The Corydon - Retail - 9.9% $ 773,780 9.9% Total $ 7,836,064 100.0%
  16. 18. Occupancy Metrics Sources: NMHC; Dupre and Scott; NIC MAP; US Census * Properties opened April 2009
  17. 19. <ul><li>Case Study for Intergenerational Living </li></ul><ul><ul><li>Student, Resident & Team Member </li></ul></ul><ul><li>Fundraising </li></ul><ul><li>Community Events </li></ul><ul><li>UWAA Relationship </li></ul><ul><li>Retail Focused on Local Operators </li></ul>Success: Community
  18. 20. Success: Business Model <ul><li>Complementary Uses are Important </li></ul><ul><li>Diversified Returns within a Single Asset </li></ul><ul><li>Scalability Across Markets </li></ul><ul><li>Concept Primed for Specific Markets </li></ul><ul><li>Experienced Operators are Imperative </li></ul>
  19. 21. Lessons Learned <ul><li>The Concept Works; Performance Speaks for Itself </li></ul><ul><li>Sister Project in Kirkland, WA </li></ul><ul><li>Seniors Like Keg Parties, Too! </li></ul><ul><li>Unfortunately, We're Not Perfect... </li></ul><ul><ul><ul><li>Less-than-Ideal Parking Access for Retail </li></ul></ul></ul><ul><ul><ul><li>Operational Challenges of Shared Services </li></ul></ul></ul><ul><ul><ul><li>Lots of Patience and Apologies </li></ul></ul></ul>
  20. 22. Questions

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