Assisted living facilities are being proposed in two beach towns across the central east coast of Florida, as the industry shows signs of recovery after enduring low occupancy rates and inventory growth all of last year.
In Ormond Beach, developer Paul Holub is preparing to sell 5.54 acres at 1211 W. Granada Blvd. to Yosef Brinkman, based out of Miami Beach. Brinkman is a manager at New York-based equipment and distribution consultant company TMK Technics Corporation.
According to a recently submitted application to the St. Johns River Water Management District, Brinkman intends to develop a 150-unit assisted living facility called Revella Senior Living. Sarasota-based Wiseman Construction is the contractor and Orlando-based Baker Barrios Architects is the architect.
Holub is the developer of Granada Pointe, located nearby on the 600 block of West Granada Boulevard in Ormond Beach. The roughly 10 acre-site straddles Granada Boulevard and features pad-ready parcels that can accommodate a total of 78,650 square feet of non-residential development.
Down south, at Indian Harbour Beach, co-developer of the Fortebello Beachside townhome community, Construction Engineering Group, is launching the final phase of an old development project known as Casalina Isles.
The construction company is working on behalf of the property owner, AJACCIO LLC, to develop a 96-bed assisted living facility on a 1.31-acre vacant lot next to 168 Mediterranean Way. According to a submitted site plan the project consists of twin multi-story buildings connected by a garage.
Entitlements allow for up to three stories in height. Plans show the project will roughly span 83,000 square feet.
CEG helped renovate the townhomes, part of the Fortebello complex, in 2014. Private investors took the Fortebello property out of foreclosure after its original owners were charged with conspiracy and wire fraud, according to reports by Florida Today.
Move-in moratoriums and general fear for the safety of senior residents against a virus that causes severe illness in the elderly kept occupancy at senior housing and assisted living facilities low throughout all of last year.
But recently reported data suggests occupancy levels are stabilizing with the rollout of the vaccine.
A report released early this year by the National Investment Center for Seniors Housing and Care found occupancy at U.S. skilled nursing facilities increased to 71.2% in February 2021 compared to 70.7% from the previous month. Despite the modest improvement, occupancy remains below pre-pandemic levels.
Inventory growth also slowed, according to a fourth-quarter 2020 report by NIC. Data found only 1,626 assisted living units were added in primary markets throughout the nation, the fewest since the third quarter of 2013.
Prior to the pandemic, real estate research firm, Green Street Advisors, considered senior housing to be one of the fastest-growing commercial real-estate sectors.
According to a WSJ report, high demand for senior housing, including assisted and independent living facilities, was expected to accommodate a massive baby-boomer generation: 72 million people born between 1946 and 1964, or about one in five Americans.
A rise of “aging-in-place technologies” and the average age of people entering senior housing rising (to about 84 to 85 years of age) may disrupt that demand, according to the report.