Oppidan Investment Company — a national property development firm with $1.5 billion in developed property and more than 300 projects completed to date — is now paving the way for a new business channel: senior housing.
The Minneapolis-based company recently broke ground on its first senior housing facility set to open June 1, 2015. The new facility, Red Rock Senior Living in Woodbury, Minn., will be a rental community with 77 units total, including 14 independent living apartments, 24 assisted living apartments and 32 memory care apartments. The facility will be operated by Ebenezer in partnership with Fairview Health Services and is estimated to cost $13 million, Oppidan told SHN.
Oppidan offers a range of real estate services, including asset management, construction and project management, and brokerage services, but is now getting on board with senior housing development due to the favorable demographics and what it sees as untapped potential.
“We just see that the demographics support more supply,” said Shannon Rusk, the Oppidan developer in charge of the deal. “The baby boomers have expectations of higher quality senior living.”
Amenities at the new facility include a bistro, movie theater, fitness area, library, hair salon, massage and therapy room, activities areas and different dining options, Rusk says.
However, Oppidan is not targeting a specific senior market with its new development, as Red Rock will not be classified as a “high-end” senior living community, but will be middle market, she said.
“We have not targeted any specific market,” Rusk said. “Rather, we will flex with what is required in a market based on demand determined by a professional study.”
Entering the Minnesota market, which some say is becoming saturated by senior housing projects, was a decision pushed by the continuing demand for senior housing.
This development is the first of the company’s plans to expand into the senior housing market, but is only just the beginning. Rusk says Oppidan is planning to build other senior facilities elsewhere in the country and is now “actively looking” in different cities and states. Although there isn’t a planned number of projects in the pipeline, Rusk said projected costs of future projects will be comparable to that of the Red Rock Senior Living community.
Oppidan will begin marketing the new community within about three months, Rusk says.
Written by Emily Study