A California development partnership is making big plans for senior housing with a current pipeline valued at around $880 million worth of assisted living and memory care units.
The company, FCM Capital Partners, based in Roseville, Calif. is breaking ground this week on the first of more than two dozen California area properties that will fall under a new senior living brand, SummerPlace Living.
Through a joint venture partnership with Costa Mesa, Calif.-based PDC Capital Group, FCM says within three to four years its properties will span 25 communities throughout California and Nevada and expects to develop as many as 75 communities in total across the United States longer term.
“We think if we opened a center a day for the next five years proabaly couldn’t meet the demand headed our way,” Chris Miller, Chairman of SummerPlace Living told SHN. “We know our competitors are looking to expand, and it’s not our secret but we’re building a little bigger and better mousetrap.”
FCM Capital is focused on the mid- to high-end market, with an eye toward amenities such as gourmet kitchens as well as activities and services. The facilities will be managed by Mosaic Management, Inc. headquartered in Salem, Oregon and are being designed by Portland, Oregon-based LRS Architects.
The new line of properties broke ground Wednesday with a site in Carmichael, California that will be a 120-unit, 138-bed facility. Unit pricing ranges from studios starting at $3,525 per month for assisted living and private memory care units starting at $5,517 per month. FCM anticipates the community will be completed by 2015 with pre-leasing beginning in late-spring 2014.
Additional facilities are currently planned for Citrus Heights, West Sacramento and Lincoln, with development costs are expected to range from $20 million to $45 million per property.
PDC Capital Group has raised capital partly through the EB-5 Program through foreign investment with the promise of job creation once the properties are developed. The first project is expected to create 120 new jobs with 470 jobs across the first four Sacramento-area communities.
“They provide most of the equity we put into the projects through EB-5, then we use standard debt financing through a wide variety of sources,” Miller said of the partnership.
While Miller says FCM is “open” to some potential turnaround opportunities of existing independent living properties into assisted living commuities, the plans are focused on new development rather than acquisitions.
“These projects are varied in size and scope,” he said. “There are no two that are alike.”
Written by Elizabeth Ecker