Last month, Engel Burman Group began construction of two senior living developments in Mt. Sinai, New York. The $125 million project, set on 24 acres, consists of a 225-unit age-restricted community for residents 55 and older, and a 120-unit Bristal assisted living facility.
Interest in the active adult segment is hot, as investors and operators seek to serve the huge baby boom demographic that is aging but not yet moving into traditional senior housing in large numbers. But combining age-restricted residential housing with assisted living is not a new play for the Garden City, New York-based real estate developer, Engel Burman Partner Steven Krieger told Senior Housing News.
When Engel Burman’s first project, the Bristal at East Meadow, New York, went under contract in 1997, the original plans called for 100 units of age restricted apartments, a 280-bed skilled nursing facility and a 35-unit assisted living facility. Engel Burman Partner Jan Burman already had built a 438-unit, 62-plus age-restricted community on an adjacent site, the Meadows. Krieger eventually built another 400 units of 55-plus apartments.
“Our first project wound up being a CCRC, similar to what we’re now building in Mt. Sinai,” Krieger said.
The Bristal at East Meadow was 98% leased within six months of opening. Krieger had the success of the Bristal at East Meadow in mind when Engel Burman bought the Mt. Sinai site from Port Washington, New York-based Amsterdam House.
Looking for repeat success
Amsterdam wanted to build a continuing care retirement community on the site, but the zoning allowed for up to 225 apartments and an assisted living community, Krieger said.
With that knowledge, Engel Burman and its partner in the development, Chicago-based health care real estate investor Harrison Street Real Estate Capital, moved quickly to acquire the property.
“We went under contract knowing this was a good site,” Krieger said.
The zoning allowed for a faster entitlement process. Engel Burman and the Town of Brookhaven Industrial Development Agency (Brookhaven IDA) entered an economic incentive agreement which will help facilitate construction.
Construction of the assisted living facility is expected to be completed in 15 months, Krieger said. The active adult community will be ready in Summer 2020. The Mt. Sinai development is one project in what is shaping up to be a packed construction pipeline for Engel Burman.
Other developments in planning include a Bristal assisted living community in Bethpage, New York, and a 55-plus age-restricted community in Deer Park, New York. Engel Burman is also developing a community in Uniondale, New York, which is another mix of active adult and independent living. Each of those segments will include 220 units.
Overall, Engel Burman’s portfolio consists of 17 Bristal assisted living communities, eight active adult properties and an independent living community in New York and New Jersey.
The post Blending Assisted Living, Active Adult Nothing New for Engel Burman appeared first on Senior Housing News.
Source: Senior Housing News