The COVID-19 pandemic has brought additional challenges to the process of developing, opening and expanding a new senior living community. But so far, operators are finding that most seniors who put down deposits on new units still plan to move in. That’s according to panelists who spoke on a webinar Wednesday hosted by specialty investment bank Ziegler.
Speakers discussed the importance of conducting supplemental depositor surveys when it comes to performing feasibility studies in a post-COVID-19 world, where obtaining start-up or permanent senior living financing has become increasingly complex.
“Among clients who had planned on financing just prior to COVID, we’re focusing a lot on depositor presales and how those have been impacted, and examining whether they have a long lead list or if interest in the community has started to wane,” said Gail Miller, a principal at the professional accounting firm CliftonLarsonAllen.
Feasibility study consultants also are paying more attention to operating expenses than before COVID, said Keith Seeloff, a partner at the professional accounting firm Dixon Hughes Goodman.
“We’re looking for more information now, not less, on the status of operations and the market in general, Seeloff said. “We’re revisiting everyone’s operating expenses, as so many have had to grant hero pay and pay for testing and personal protective equipment. We’re also going to spend a lot of time going over scenarios and sensitivities around occupancy levels and entrance fee turnovers.”
