Toledo, OH-based real estate investment trust Welltower unveiled a brand extension Wednesday to serve middle-income adults aged 55 or more years.
welltowerLiving “delivers a housing product at a significantly lower cost to residents than traditional senior housing alternatives,” said Welltower Senior Vice President – Strategic Investments Ayesha Menon. “This initiative also allows Welltower to leverage a unique triumvirate of capabilities — healthcare relationships, sector-relevant data and analytics expertise, and real estate investment capabilities — to deliver a differentiated product that creates value for all stakeholders.”
The communities will be purpose-built and private-pay housing that will address residents’ social and wellness needs in part through technology, the REIT said. Offerings will be “limited in service relative to traditional senior housing yet program-rich relative to traditional multifamily options,” according to a press release.
“welltowerLiving was created to provide a safe and accessible environment for aging-in-place,” Welltower Chairman and CEO Thomas J. DeRosa said. “The integration of physical design, technology and affordable access to products and services that can enhance the social determinants of health will allow Welltower to meet the needs of the rapidly growing population of moderate-income, independent seniors that we expect will be increasingly covered by Medicare Advantage programs.”
The brand extension “significantly expands the company’s addressable market from a predominantly 75+ years old, affluent resident base to one which is 55+ years old with a broader economic profile,” the REIT said.
Three properties in Las Vegas, with a total of 620 units, will be the first to carry the welltowerLiving name, Welltower said. The properties were renovated in 2017 and are expected to have lower staffing levels than traditional senior housing. With anticipated resident turnover of 20% to 25%, operating margins and capital expenditures should more closely resemble those of multifamily housing, according to the REIT.
“The model will also provide opportunities for Welltower’s health system partners to integrate clinical programs and onsite care models in select communities with the goal of improving outcomes and reducing the total cost of care for their senior populations,” Welltower said.
The REIT said it also is pursuing limited-service senior housing projects with Clover, Terwilliger Pappas and Priya Living, with plans to start three projects each with the latter two firms this year.