Hubbell Realty has launched a new business vertical to have a closer hand in managing its Edencrest brand of senior living communities.
At the start of the year, the West Des Moines, Iowa-based company announced its subsidiary Highmark Senior Living was taking on management of six Hubbell communities operating under the Edencrest banner.
The communities are described as having amenities including restaurant-style dining, beauty salons and fitness centers; with assisted living and memory care units for residents.
New Edencrest communities would also be managed by Highmark. There are currently seven Edencrest communities, with an eighth coming online in May and an additional two in the pipeline with a 2025 completion date. The operating company took shape in the second half of 2023, according to Kyle Gamble, COO and executive vice president of Hubbell Realty Company.
“We did not take this decision lightly, as it is a very hands-on business,” Gamble said. “We hired a very strong team of experienced professionals that know the industry, they know the business, they know how to operate senior housing communities.”
Prior to the launch, Hubbell Realty Company had been responsible for the development, investment and general contractor for the Edencrest brand. The company has been expanding into the senior living industry since its first community was developed in 2014.
Hubbell Realty has acted as a manager for other assets, including managing about 9,800 apartments, 7,600 homes and 2.5 million square feet of commercial space in the Des Moines area. The company has over the years developed 30 apartment communities with over 10,000 apartment homes and built and sold over 1,000 homes.
The company’s move into managing senior living was a “natural evolution” given its experience elsewhere, Gamble said.
“We got started in the business really to expand into a new sector of real estate in the central Iowa community, which is our home base,” he said.
The Edencrest brand focuses primarily on assisted living and memory care, though some of its communities feature independent living components as well.
Since the assumption of management duties, Gamble said things have been going well for Highmark. Among the Edencrest communities, occupancy is strong and sitting at an average of 84%, though Gamble noted the number is low at the moment due to a community still being in the lease up stage.
For the time being, Hubbell Realty Company is going to be focusing on optimizing its current assets with Highmark and delivering its next communities within the next 18 months. Moving forward, Gamble added Highmark Senior Living will only be involved with the Edencrest brand, and will not be providing management services outside of the communities developed by Hubbell.
“It’s a very, very specific and very focused management company,” he said.
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