CROWN SENIOR LIVING, LLC.
Currently, the company is involved with both the adaptive reuse of existing buildings to assisted living and memory care facilities and new construction of senior housing facilities.
For selected adaptive reuse projects, a new construction component is proposed to increase the array of services. Crown can provide the majority of “pre-development services” in creating a project ready for development as a senior housing facility. By assuming the primary risk in the pre-development process, the company can assist existing building or land owners in optimizing value by creating a “turnkey” development opportunity.
Alternatively, Crown will enter into an Option Agreement to acquire the property after pre-closing tasks are completed. After completion of pre-development process, Crown then typically sells or joint ventures the “turnkey” project with owners and operators of senior housing. Crown principals have also owned and managed senior housing facilities.
EXISTING BUILDINGS RE-PURPOSED
- Dated senior housing facility requiring renovation to current healthcare standards
- Adaptive Reuse of a hospitality property converted to senior housing
- Adaptive reuse of schools, hospitals and medical buildings to senior housing
Existing Buildings Re-purposed in Conjunction with New Construction
In selected projects, existing buildings are fully renovated in conjunction a newly constructed building. Upon completion, the facility is perceived to a newly constructed building with development costs which are less than competitive new construction facilities.
Crown principals have provided “turnkey” pre-development services for many senior housing facilities to both for-profit and non-profit groups.
Project Feasibility – Internal Analysis
After a potential project has been identified, Crown completes both a preliminary project pro forma and internal feasibility/market analysis. Based on experience in senior housing over the past 25 years, Crown has developed a proprietary internal feasibility and market analysis, which examines competitive facilities and demographic data in Primary Market Area (PMA). This analysis determines if the project has initial financial and market feasibility.
Project Feasibility – External Third Party Feasibility Studies
Every proposed senior housing project requires an independent third party feasibility study from an experienced senior housing consultant. The type of proposed financing such as Tax Exempt Bonds, HUD or conventional will determine the specific feasibility study group.
Pre-Development Funding Budgets
In conjunction with the Project Feasibility Internal Analysis, Crown completes a detailed budget, which describes all costs to be funded sequentially over the pre-development period. These costs are construed to be “at risk” as the proposed project typically does not yet have the requisite municipal approvals, architectural plans, construction budgets or financing.
Financial Pro Formas
Concurrent with the initial project feasibility analysis, Crown completes a financial pro forma. This proprietary Excel program examines the project on a monthly basis from the project closing and construction through five years of operations. Pro formas include:
- Project Development Costs
- Equity Requirements and Potential Credits
- IRR Analysis
- Detailed Monthly Income and Expense Projections
Financing Options utilized by Crown
- HUD 202, HUD 221d3, HUD 221d4 and HUD 232
- Private Activity Bonds
- Tax Exempt Bonds
- Non-Profit 501c3 Bonds
- Midwest Disaster Area Tax Exempt Bonds
- Tax Increment and Tax Abatement Financing
- Conventional Financing
- New Market Tax Credits
- Low Income Housing Tax Credits
Past Third Party Relationships in Senior Housing Developments
- Managers of Senior Housing
- Non-Profit Organizations
- Land Owners
- Private Equity Funds
- Building and Hotel Owners