We are interested in developing senior housing. Where do we to start?
There are a number of factors that determine whether senior housing is an appropriate project type to pursue. A quick call or email to Marathon Development can quickly determine your best course of action, go ahead and reach out to us!
What would you charge to meet or consult with us?
A number of private and non profit organizations are hesitant to take the first step. Boards of Directors typically have many questions from many different points of view. Marathon will provide two pro bono site visits to discuss the development process, financing options, answer questions, and discuss Marathon’s potential scope of services. The only cost incurred would be reimbursement for travel expenses, if any.
Does Marathon offer on-going management of the completed development?
Marathon does not provide third party management, instead, we assist in the selection of a strong management company. Because of our experience we can provide seasoned guidance in finding the appropriate facility operator.
Does Marathon do development outside of senior housing?
Yes! Marathon will develop a number of project types on a case by case basis including medical office buildings and multi family development.
Does Marathon have any experience working with non-profit organizations?
Many of Marathon’s clients are non profit organizations. This includes faith based 501c3, private not for profit 501c3, Housing Authorities, Health Districts, Hospital Districts, and Senior Centers. Marathon has also consulted with several private organizations including Emeritus, Life Care Services, Senior Services of America, National Health Investors and Village Concepts.
What services could be included with senior housing development?
Marathon Development provides numerous services needed to bring a project from vision to occupancy including:
- Assisted Living Consulting
- Independent Living Consulting
- Memory Care Consulting
- Senior Citizen Housing Consulting
- Construction Consultant
- Feasibility Study Consultant
- Capital Planning
- Capital Improvement Plan
- Turn key Services
- Creating the project vision
- Creating the pro forma and project estimate
- Identify appropriate financing types
- Selection of all third-party professionals
- Coordination of the development team
- Project oversight
- Permitting, and state licensing assistance
- Overall project budget accounting and lender compliance
- Monthly construction draw processing
- Managing construction lien releases
- Managing punch list items, monitor commissioning of new systems and equipment, overall coordination and delivering of a completed project.
How do you get paid?
Development of a senior housing development is complicated. Lenders prefer to have an experienced senior housing developer involved to provide; professional project coordination and management, compliance with the project budget, construction loan agreement, project licensing and project completion. Payment structures vary from project to project. Typically, the lender disburses payment to Marathon from the construction loan in the same manner as the architect or general contractor.
How long does a project take from the vision to completion?
Senior housing projects can take time. Much will depend on local jurisdictional permitting. Typically, a project will take 3-5 years to complete with feasibility, design, permitting, construction and lease up/stabilization. Project timelines varying by jurisdiction as well as site specific conditions.
Example Timeline:
- Feasibility Period - 3-6 months
- Design and Permitting - 9-18 months
- Construction - 12-18 months
- Occupancy (Stabilization) - 18-24 months
How much does it cost to develop a senior community?
The per unit cost varies by location, cost of land, the local labor market and funding source. Call us to discuss.
Example of Project Expenses to Consider:
- Land cost
- Soft costs (design costs, jurisdictional permitting fees, impact and connection fees, furniture, fixtures & equipment, nurse call systems, etc.)
- Soft costs (financing fees, construction interest reserve, pre-opening costs and lease up reserves)
- Hard costs (contingency allocation, earthwork, vertical construction, landscaping, etc.)
Why should we select Marathon over other companies to handle our project?
Marathon specializes in senior housing development. Having experienced many of the difficulties that come with senior housing on a personal level, Marathon’s staff has a true passion for what we do and it reflects in our work. We are a one-stop-shop alleviating the need for sourcing additional outside professionals resulting in a seamless, simplified process for the client. We are based in Seattle but travel nationally. Our strong network of professionals have successfully honed their skills on projects of this type. We clearly understand private ownership as well as board governance and appreciate the time and decision processes involved. Our track record is full of satisfied clients and references are eagerly shared with potential clients. We strive to bring our client’s mission, vision, and goals to reality.