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Senior Housing
and 
Senior Care
Feasibility Study

Wert-Berater, Inc. specializes in providing expert and reliable feasibility studies for Senior Housing projects.

Assisted Living Facility Feasibility Studies

Continuing Care Retirement  Communities Feasibility Studies

Independent Living Facilities Feasibility Studies

Nursing Care Feasibility Studies

Nursing Homes Feasibility Studies

Memory Care Living Facility Feasibility Studies

 

 

Our team of experienced professionals evaluates all aspects of the project to ensure its success – from project inception to construction and operations planning.

 

Choose us to help you make informed decisions for your

Senior Housing project.

Book a meeting to interview us, ask questions and view samples of our work.

Because of client project confidentiality, unfortunately we do not email samples to customers  - Client Confidentiality is Sacred.

Senior Care
Feasibility Study

At Wert-Berater, Inc., we are experts in Senior Care feasibility studies, providing essential information to those seeking SBA 504, SBA 7(a), USDA or other commercial loans.

 

Our team of professionals is dedicated to delivering accurate and comprehensive evaluations of Senior Care properties, including market analysis, financial projections, and site assessments.

 

With our expertise and attention to detail, we help clients make informed decisions about their investments and develop successful business plans.

Whether your project is an expansion or new build Hotel, we have the experience to provide a comprehensive Senior Care feasibility study that assist your decision making process and potential loan underwriting in compliance with the Small Business Administration (SBA), USDA or other commercial loan requirements.

See our Experience Page for recent Senior Care Feasibility Studies completed around the nation.

FAQs

How do we do it?

Senior Care Feasibility Studies are carried out by a careful evaluation as presented in the following Senior Care Feasibility Statement of Work which complies with USDA and SBA loan underwriting requirements.

We subscribe to reliable sources of data that are accepted by loan underwriters.

Will my Senior Care feasibility study be accepted by my lender?

We are approved by a vast network of SBA lenders, CDC's and Commercial Banks.  Prior to ordering your Senior Care feasibility study, if your lender in not on our list, we are pleased to provide our feasibility study consultant credentials including E&O Insurance, Sample Feasibility Studies, references, and our resumes.

How much does a Senior Care Facility  Feasibility Study cost?

Depending on the complexity of the project and the time needed to have a completed Senior Care feasibility study ready, the cost varies from about $6,500 to $15,000.

How much time is needed for us to complete and deliver your Senior Care feasibility study?

This depends on our workload when you order your Senior Care feasibility study.  

RUSH orders cost extra, but can be completed in as little as 5-business days, providing you have the necessary items provided to us at engagement.

Generally, Senior Care feasibility studies are completed in about 10 to 15 business days.  

What items do I need to provide to have a Senior Care Feasibility Study completed? 

Our Senior Care feasibility studies are comprehensive and intended for loan underwriting purposes.  

We normally request the following items when you engage us for a Senior Care Facility feasibility study:

  • Parcel number(s)

  • Land cost

  • Site plan

  • Building renderings and dimensions  (SF areas and allocations), unit mixtures including Memory Care, if any

  • Project cost breakdown

  • Land cost and when purchased or is it under contract

  • Resumes for all owners with 20% or more interest

  • Loan terms applied for including Loan Type such as SBA 504 or 7(a), USDA, loan amount(s), interest rate and amortization

  • Copy of your business plan including your projections

  • Any appraisals

  • Any environmental reports (if a purchase, continuance or reposition project, all Phase I or Phase II Environmental assessments

  • If your lender has provided a Term Sheet, we would like to have a copy

  • Other items you deem important

  • Lender contact details

Senior Care Facility Feasibility Study Statement of Work

Executive Summary

Senior Care Facility Feasibility Studies are designed to comply with SBA, USDA and other commercial loan application requirements. 

 

The Executive Summary includes the following items:

  • Project summary of the planned improvements details and location

  • Loan request details

  • Project cost summary

  • Conclusions and Recomendations

2

Economic Feasibility

Senior Care Facility Feasibility Study site analysis is a critical component of the project whether its of new construction, expansion or a repositioning project, a compete site analysis is completed summarized as follows:

Information regarding project site including:

  • Land area

  • Site locator maps

  • Zoning

  • Flood zone

  • Access and Road Service to the Site

  • Utilities availability

  • Availability of infrastructure

  • Visibility

  • Traffic counts

  • Neighborhood analysis

  • Radius Demographics, Senior Demographic Analysis as well as 40+ age group (support group) Demographic Analysis

  • Intended hours of operation

  • Labor scheme which summarizes the number of employees, shifts worked, wages and benefits

  • Site analysis summary 

  • Conclusions

3

Market Feasibility

The market feasibility section for a Senior Care Facilities feasibility study includes the following items:

  • National industry overview

  • Local competitive analysis including existing, in-planning and under construction competitors 

  • Room rates and rate growth rates

  • ADL and IADL revenues, occupancies, growth rates, etc.

  • Senior Care Facility Bed Demand forecast 10-Years

  • Gross revenue estimates

  • Conclusions

4

Technical Feasibility

The technical feasibility study section for a Senior Care Facillity feasibility study includes the following items:

  • Suitability of the selected site for the intended use including an environmental impact analysis

  • Development and construction cost estimates

  • Commercial Replication risks

  • Regulation and Governmental Action

  • Conclusions

5

 FinancialFeasibility

Financial Feasibility

The financial feasibility study section for a Senior Care Facility feasibility study includes the following items:

  • Pro Forma Assumptions

    • Average Monthly Bed Rates

    • Occupancy

    • Expense Ratios

  • Pro forma (10 years) 

  • Discounted Cash Flow Analysis (DCF)

  • Internal Rate of Return (IRR) Analysis 3-, 5-, 7-, and 10-year hold

  • Debt Service Coverage Ratio (DSCR)

  • Sensitivity Analysis

  • Breakeven Analysis

  • Conclusions

6

Management Feasibility

The Senior Care Facility feasibility management feasibility includes:

  • Summary of your experience and education, training for all owners with a 20% interest or more

  • Ownership interest summary

  • Availability of short-term credit

  • Tax issues

  • Company organizational chart

  • Type of legal entity and information concerning its formation

  • Conclusions

Why choose Wert-Berater, Inc. for your Senior Care Facility Feasibility Study and what sets Wert-Berater, Inc. from their competitors?

We are a small and focused firm that specializes in feasibility studies since 1998 having over 25-years of experience.  

We are lender underwriting report focused, thereby your lender will be provided with the appropriate third party assessment of your project. 

We understand the loan underwriting process. 

 

Over the decades, feedback from lenders has helped shape our Senior Care Facility feasibility studies to comply with underwriting demands.

Moreover, we have experience in a wide array of markets and franchises.  

Our in-house files include studies that we have provided whereas many owners have provided us with financial statements for their other Senior Care Facilities facilities they own, we also place reliance on the most recent NIC MAP data, thus we have developed well-supported pro forma statements based on actual financial statement ratios in just about all 5o states and territories as well as international locations.

We also subscribe to platforms such as RMA (Risk Management Association), ArcGIS Business Analyst, and Dun & Bradstreet which provides us with localized competitor financial data.  

Our Senior Care Facility feasibility studies are bankable feasibility studies mostly used for to support loan applications. 

Types of Senior Care Facilities

Independent Living

Independent living properties typically serve the healthiest residents among seniors housing and care properties, and offer a lifestyle choice that provides hospitality services, access to meals, and freedom from daily chores, such as cooking, cleaning, and home maintenance. Independent living is often a choice for seniors looking to increase social interaction, while reducing routine housework and home maintenance.

 

The focus of this section is on independent living communities, including all those in which the predominant care segment offered across all units is independent living. This section does not include continuing care retirement communities (CCRCs), also referred to as life plan communities (LPCs).

Resident Population

Independent living properties are generally designed for
residents over age 75. The number of households is a common
gauge of potential demand, as one household generally will
transition to one unit, even if the household has multiple
members—e.g., a married couple.

 

The current occupied penetration rate—i.e., the share of age 75+ households living in independent living communities—is 2.5%.

Resident Profile

The typical new resident of an independent living property is an
83-year-old widowed female. She is relatively healthy and does not
require assistance with activities of daily living (ADLs). Over the past
decade, the age of entry for new residents has been rising from the
early-80s to the mid-80s, as the 2008-2009 economic recession
and its aftermath caused many residents to delay relocating to
these properties. This delay has resulted in residents being a bit
frailer at move-in, which necessitates, in some cases, assistance
with walking.

Assisted Living

Assisted living serves residents with more needs than those in
independent living, but fewer needs than those typically in nursing
care. Assisted living residents generally do not have
needs that
require 24/7 medical attention or supervision.

 

The service mix emphasizes convenience and hands-on care associated with the activities of daily living (ADLs). Assisted living properties often include a separate memory care segment, generally in a dedicated wing or floor.

Resident Population

Assisted living often focuses on slightly older residents than those
in independent living because service needs typica
lly increase with
age. The current occupied unit penetration rate (i.e., share of age
75+ households living in assisted living communities) is 3.8%.

Resident Profile

The typical new resident in assisted living is an 85-year-old widowed
female requiring assistance with two ADLs. She moved to assisted
living from a private home or apartment located within the same zip
code or county as the property.

Memory Care

Alzheimer’s disease is the most common form of dementia and
accounts for 60%-80% of all dementia cases.

 

However, there are many different forms of dementia, each requiring specialized care.


In 2019, an estimated 5.8 million Americans had Alzheimer’s, and
5.6 million of those with the disease were over age 65.

 

The number of people with Alzheimer’s disease over 65 years is expected to grow by 27% to 7.1 million in 2025, and may grow to 13.8 million in 2050, as the size and proportion of the U.S. population age 65 years and older increases.

 

Between 2019 and 2025, every state across the country is expected to experience an increase of at least 12% in the number of people with Alzheimer’s due to increases in the population age 65 and older.

 

The West and Southeast are expected to experience the largest percentage of increases. These increases will have a substantial impact on states’ healthcare systems, as well as Medicaid programs.

Resident Population

The current occupied unit penetration rate for memory care
communities is 0.4%.

Resident Profile

In a traditional assisted living community, 40% of residents are
living with Alzheimer’s disease or other dementias.

 

Residents living with mild cognitive impairment (MCI), early-stage Alzheimer’s disease, or the early stages of other forms of dementia can typically be cared for along with the general assisted living population.


However, challenges may arise in caring for these residents as the
level of dementia advances.

Nursing Care

Nursing care differs from other types of seniors housing and care in several important ways:

 

  • Nursing care properties—also called skilled nursing properties, 
    reimbursement—Medicaid and Medicare—for over two-thirdsskilled nursing facilities, or SNFs—rely on government  
    of their revenue, while other types of seniors housing are predominately private pay.

 

  • Nursing care properties house two types of residents/patients care while Medicare is the largest single payor for the carecare. Medicaid is the largest single payor of patients’ long-term acute one for long-stay custodial care and the other for short-stay post- of short-stay post-acute patients. 

 

  • Changes in federal and state healthcare policies, delivery, and funding can have a more direct impact on nursing care properties and operators than other types of seniors housing.

 

  • Key performance drivers for nursing care properties include capacity utilization, regulatory compliance, and the ability to manage total care delivery costs—including real estate costs—appropriate for the acuity of each resident population. Referral patterns from partnering hospitals, condition specific specialization, managed care (insurance company) relationships and participation in alternative care delivery models also impact performance.

 

  • In conjunction with ongoing efforts by the Centers for Medicare and Medicaid Services (CMS) to limit Medicare spending by reducing post-acute care use, the ability of nursing care providers to deliver desired patient outcomes with shorter lengths of stay and reduced rehospitalization rates has become a significant performance driver.

 

  • Much of the nursing care property inventory dates from the 1970s and 1980s and, as such, is being updated in some markets. The reinvestment generally is being driven in an  effort to better accommodate the type of care being provided in properties today and the evolving demands of the patient marketplace. Third-party payors add another consideration for investors.​ Over half of states restrict the construction of new nursing care properties through Certificate of Need (CON) requirements.

Resident Population

Nursing care properties are the largest component of the seniors
housing and care industry.  Primary and Secondary Markets, the occupied penetration rate is 8.0% as of 4Q19.

 

Over the course of any given year, nursing care properties care for a larger portion of this population because of the number of short-stay residents. Nursing care properties also care for some residents below 65 years of age.

Resident Profile

The traditional long-stay custodial care resident is between 75

and 95 years of age, with an average age of 82 years. 

 

A somewhat younger, higher-acuity short-stay patient entering nursing care for post-acute rehabilitation and recovery after a surgical procedure or other hospital stay, or in lieu of an inpatient hospital stay.

Continuing Care
Retirement Communities

Continuing care retirement communities (CCRCs), also referred
to “life plan communities” (LPCs), provide older adults with
independent living, assisted living, and skilled nursing options—
frequently with specialized memory support options—typically from
one provider in a single location. This arrangement allows older adults to remain in the same community with the same provider even if their future care needs change. CCRCs tend to target an independent living customer seeking hospitality-style amenities and services with the security of knowing that future care needs will be met.

Resident Population

The current occupied unit penetration rate for CCRCs
(i.e., the share of 75+ households living in CCRCs) is 3.9%.

Resident Profile

The majority of CCRC residents initially live in an independent living
unit. The average age of a CCRC resident at move-in is between 80
and 83 years of age. The typical resident does not require assistance with any activities of daily living (ADLs). While CCRCs serve a predominately single-female population, entrance-fee CCRCs have a significantly higher percentage of married couples (42%) compared to 29% at rental CCRCs. Prior to moving into a CCRC, the typical resident lived in a private home within 10-12 miles of the property.

Senior Care Facility Feasibility Study Consultants

Superior Research And Analysis

At Wert-Berater, Inc. we invested into the most reliable and sophisticated Senior Housing Data Available for Assisted Living, Independent Living, Memory Care, Rehab Care, Ambulatory Care, Continuing Care Retirement Communities and Nursing Home Care Available.​

 

Senior Care Feasibility Studies Nationwide​

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