A new senior housing owner and operator is nearly ready to make its debut.
London-based Quadrum Global, which spun off from alternative investment house Cube Capital Group in 2013, is expected to open its first-ever senior housing community in Fort Myers, Florida, by the end of the year.
Until now, the real estate development and investment firm has primarily dealt in hospitality, with high-end, boutique hotels in Chicago, Miami and New York City, including the Godfrey Hotel, the Essex Inn, and two Arlo-branded hotels. As of 2015, the firm has more than $1 billion in hospitality and residential assets in its U.S. portfolio, and that same year decided to enter the senior living market. Despite its inexperience in the sector, Quadrum is planning to exclusively manage all of its future senior housing properties through a newly-formed operating arm, Quadrum Senior Living Management.
That’s not to say Quadrum is necessarily unprepared for the senior housing space. Colin Marshall, Quadrum’s president of senior living management, describes himself as the organization’s “on-the-ground [senior housing] expert” who’s been involved in the senior housing industry in various capacities for 23 years.
Still, the forthcoming Fort Myers community—Amavida Living—will be “very much” hospitality-oriented, and will resemble more of a town center than a traditional senior housing community, according to Marshall.
Quadrum purchased the 32.5-acre site in Fort Myers in 2015 for $10.74 million. The all-in construction cost for Amavida is approximately $95 million.
Once it’s finished, the rental model community will have a total of 460 independent living, assisted living and memory care units. Residents’ cost per month will range from $2,495 to to $6,000.
“[Price-wise,] we’re very comparable to the rest of the market,” Marshall said.
Quadrum hopes its first-ever senior housing community will represent a new, more modern approach to the senior housing model.
“We don’t present or look like a senior living community,” Marshall explained. Like some of its peers, Quadrum has distanced itself from terms like “senior” and “care,” opting to name the property Amavida Living as opposed to Amavida Senior Living.
Additionally, the Amavida campus will resemble a “town center” that’s “very heavily amenitized,” Marshall said. On top of the 460-unit senior housing community, there will be hundreds of thousands square feet of commercial and retail space, all of which is meant to give Amavida residents the same amount of choices they had before moving into the community.
The property, for instance, will feature three movie theaters. Marshall has heard criticism that this is “overdone,” but he disagrees.
“We’re more of a true community,” he said, noting that all of Amavida’s planned amenities—from tennis and pickleball courts to a salon and spa—actually give residents the opportunity to choose where to spend their time and money, which is something highly desired by the next generation of senior housing residents.
Looking ahead, Quadrum Global intends to exclusively own and manage its own senior housing portfolio, which it plans to grow through both ground-up development and value-add acquisitions.
In terms of geography, Quadrum is likely to pursue projects in Florida, New York and Chicago, Marshall said.
“We don’t want to extend ourselves too far beyond our footprint where we are now,” he explained.
Quadrum did not disclose a dollar amount it intends to spend on future projects or specify how large its senior housing portfolio will grow—though Marshall hinted that Quadrum isn’t intending to expand too quickly.
“We’re not trying to be popular, we’re trying to be meaningful in terms of how we approach this product,” he said.
Written by Mary Kate Nelson