Dominion Partners has been busy growing its senior housing portfolio lately—and it has no plans to slow down.
The Birmingham, Alabama-based company recently delivered two new Somerby Senior Living communities in Sandy Springs, Georgia, and Franklin, Tennessee, expanding the Somerby portfolio to a total 1,560 units.
Brian Parker, principal and CFO of Dominion Partners, attributes the company’s recent growth to the escalating needs of senior living options in the southeastern United States, where the company’s eight Somerby communities are located.
Currently, the company has three Somerby communities in Alabama; two in Georgia; and three other locations in South Carolina, Florida and Tennessee.
“The senior population is growing at a much faster rate, particularly in the southeast, and the southeastern cities that we do business in are experiencing tremendous growth,” said Parker.
The openings of Somerby Sandy Springs in March, and Somerby Franklin in June, were part of the company’s strategy in meeting this growing need.
Since commencing operation, Somerby Sandy Springs—which has 200 total units divided into independent living, assisted living and memory care—has been 50% leased.
And though it just opened in June, the 208-unit Somerby Franklin was forecasted to be 50% leased by this month, according to Parker.
The Somerby portfolio is projected to grow in revenue to approximately $61 million in 2017; once its Sandy Springs and Franklin communities are fully occupied, the stabilized revenue for the Somerby portfolio is estimated to be $82 million, according a press release.
Dominion Partners is growing its business in other ways, too, explained Parker.
“The addition of [Somerby Sandy Springs and Somerby Franklin] has added significantly to employee or associate growth,” said Parker.
The company has also grown its regional support staff, recently hiring new team members to oversee various Somerby Senior Living operations, according to Parker.
In terms of growth, the company is keeping its focus on expanding its footprint in the southeastern market, while also remaining cognizant of economic factors.
“Our goal is one to two communities per year,” he said. “However, we are keeping an eye on construction costs and those current trends which are causing a bit of a pause at the moment.”
While the reality of rising construction costs looms over future plans, Parker remains confident in the future performance of Dominion’s Somerby brand.
“We believe that our Somerby Senior Living portfolio is well positioned to meet the needs of aging adults in markets in the Southeast region,” said Parker. “We are pleased with the growth we’ve experienced thus far, and we anticipate even stronger demand heading into 2018.”
Written by Carlo Calma