One of the examples is real estate developer Greg Smith, who purchased a failed nursing home in Connecticut and ended up turning the development into an assisted living facility. “I didn’t even know what assisted living was,” Mr. Smith says.
Since then, his company, Maplewood Communities LLC has developed and is operating three assisted-living communities and has three others under development. Moreover, Maplewood also just cut a deal with Aviv REIT Inc., one of the country’s largest landlords of skilled nursing facilities, under which Aviv will provide capital for future growth, initially $60 million.
“We’re talking about getting 15 to 25 communities under our belt,” Mr. Smith says.
Assisted-living housing is growing into a bigger business in the New York region. While development is slow of most commercial property types—like office buildings and retail centers—a number of developers are moving ahead with plans to provide facilities that occupy a middle ground between standard apartment buildings and nursing homes.
Assisted-living tenants typically are elderly people who are generally healthy and can take care of themselves, but the facilities provide services like nurses, aides, dining and memory care. Average rents at Maplewood are $4,700 to $4,900 per month.