Capital Success - Experienced Specialists in the ALF Space Nationwide

This post is about financing for senior living projects, specifically focusing on the residential Assisted Living (ALF or RAL) model and the business opportunities it presents. More complimentary information can be requested at https://capitalsuccess.us/get-started/

More and more families need caregiving assistance for their aging mother, father, or other family-member. As a profitable service business with an appreciating real estate asset, the small or boutique Residential Assisted Living (ALF) property is a proven, favored model, amidst COVID disruptions, to larger, conventional facilities. Listed below are insights from our experience assisting with the financing of these properties nationwide:

• ALF facilities have high occupancy levels, and many have waiting lists.

• An ALF has focused staff and higher caregiver-to-resident ratios, further supporting the market appetite for this home-like setting.

• There will continue to be an under-supplied market for right-sized, boutique, residential-style assisted living locations for the next two decades.

• An ALF operator can scale to multiple properties and locations. Successful Operators build a portfolio of ALFs: multiple locations with resident capacity of 8, 10, 12, 16, 20, 25 beds per new construction site are the trend. Final ALF square footage is determined by site footprint.

--- Caregiving Locations as a Business are in High Demand ---

• An ALF is a privately-owned property that provides comfortable accommodations with amenities and supportive care from trained caregivers.

• ALF care homes provide similar services and amenities as independent living communities and provide supportive care from trained employees to residents who are unable to live independently.

• Residents who are unable to live independently experience all-inclusive support with their activities of daily living, including management of medications, bathing, dressing, toileting, ambulating and dining in a restful, home-like setting.

• An ALF can also specialize in dementia or Alzheimer’s care by trained staff members. These properties are identified as a Memory Care residence and have 24-hour support with more structured activities to ensure safety and quality of life. Most of these living environments are fully secured with locked areas and allow access to outdoor walking paths or gardens. A portion of an ALF is sometimes dedicated to Memory Care suites as a subset of assisted living.

The smaller, ALF model is attractive to seniors, as is indicated by high occupancy rates. There is strong demand for this model with low penetration, indicating a deep market for smaller, residential assisted living homes. For assistance with location analysis and site selection, we have contact with professional organizations who provide Market Feasibility Studies ahead of making a site acquisition.

ALFs tend to have lower operational costs due to smaller, simplified improvement design, less programming, and amenities. Without comprise, ALFs are constructed with luxury, home-like appearance, and design.

Residents’ fees are privately paid or paid by long term care insurance.

Most importantly, the success of an ALF property benefits from its location within the market. The respective use and amenities offered are commensurate with the demands of neighboring households. Seniors that can pay personally, or with the support of others for their mother, father, or other loved one’s resident fees are the “private pay” model ALF.

In summary, an ALF developed within an upscale community is forecasted to experience an area increase in senior-targeted population growth, accompanied by an increase in household income, and an increase in household values.

We will be glad to assist you along your ALF or other Care Home project journey. More complimentary information can be requested at https://capitalsuccess.us/get-started/

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