Oakmont Senior Living Targets Calif. Expansion with 9 New Resort Properties

| April 7, 2014

A California senior living resort developer and management company is betting big on expanding within the state, with nearly 10 projects under way or coming on line within a year’s time.

Oakmont Senior Living has announced the construction of what will be its eighth and ninth communities in Northern California, for a total of 13 communities under management. The company has planned and developed more than 30 retirement communities in the Western United States.

The company’s management expects a pace of five to six new properties each year now that the financing environment has improved post-recession.

“In general, equity and financing are more readily available to those proven builders and operators than it has been in the past few years,” says Keith Fitzsimons, CFO of Oakmont Management Group. “In addition to that, there is not a lot of new development happening in California at this time. These two things combined help make now a good time for a California company like us to actively grow.”

The communities to break ground most recently include Oakmont of Folsom, to include 47 assisted living and 19 memory care apartments, and Oakmont of Carmichael, to include 50 assisted living and 21 memory care apartments.

Floor plans include studio, one- and two-bedroom options with 10-foot ceilings and spacious bathrooms, the company says. Additional amenities include gourmet dining; daily on and off-site recreational and social activities; libraries; movie theaters; fitness centers with instructional exercise classes; activity rooms with scheduled social events, games, arts and crafts; salon and day spas; resident flower and vegetable gardens, walking paths; and pet parks.

Additional memory care-specific programs include therapy for dementia patients to promote independence.

And the pace of new development is expected to continue, with five more groundbreakings this year.

Oakmont plans to continue utilizing a relatively new senior housing revolving credit product made available by Freddie Mac after being the first developer to use the product earlier this year in a $150 million financing arranged by Greystone.

The company declined to share cost figures for its pipeline of projects.

The newest properties are expected to be completed by fall and have already begun to attract residents.

“We already have several deposits and reservations,” says Crystal Dillard, corporate director of sales and marketing for Oakmont Management Group. “We’re only 10 days in and already we have interested residents. It’s exciting to see.”

Written by Elizabeth Ecker


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Category: Alzheimer's Care, Communities, Development, Finance, Senior Care, Senior Housing, Senior Living

Comments (1)

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  1. Chris_Foley says:

    Single facility and family-owned assisted living & nursing care operators may find that the larger, new developments can be both a strategic "threat" and a strategic "opportunity," so a SWOT analysis ("Strength, Weakness, Opportunity, Threat analysis) might be a good first step once an Owner hears about a competing facility being built near them.

    (if you're faced with new facility construction in your neighborhood, if nothing else, do a SWOT in your head or on a scratch piece of paper)

    The "threat" aspect of a new facility in one's neighborhood is pretty obvious (especially one such as Oakmont's new 9 developments in California which is the subject of this article).

    For Owners who decide to keep their facility running it's even more important to look beyond the threat to see how a new, neighboring facility could become an "opportunity."

    Some quick opportunity ideas that I've seen:
    * When new, larger facilities are built, a neighboring assisted living or nursing care facility may turn themselves into a specialty, high-acuity, dementia-only facility. The higher-end memory care residents may come from the new, larger, competitive campus.
    * For a nursing home, it may mean the new assisted living competitor becomes a referral source.
    * Also for a nursing home, if you're in a CON state, it might make sense to consider selling some of your nursing home bed licenses in order to "right-size" the number of beds (for some, bed tax obligations may make this a financially beneficial option).
    * The threat of new competition may tip an Owner's hand to commit to a multi-million dollar renovation or at least new carpet & paint. Sooner is better than later and a small renovation can spruce up a building quickly to keep occupancy higher.

    PS – [Note: seeing the opportunities within the context of a competitor coming into town, is also important for Owners considering selling their business / facility-- because, if the Owners want the best chance of getting a higher price, a buyer may need to look beyond the obvious threat to be convinced of the less-apparent opportunities.]

    Chris Foley
    CPA (Retired)
    Senior Vice President, Equity, Inc.
    (614) 915-8835