Due to the ongoing impacts of COVID-19, some new projects struggle to secure the necessary capital stack to move forward. This has been more of an issue in the senior living segment than the multi-family segment; the multi-family space has remained resilient during this challenging year in regards to financial backing for new construction. In speaking with our friends in the debt and equity circles, the money to fund new ground-up senior living projects is getting much more selective, but I am still being told “the good deals/projects find a way to get done,” that is positive to hear.
In this environment, now more than ever, developers need to have the best teams possible in place to support a successful project. This of course, includes their general contractor, architect, and operator. Debt and equity sources need to feel confident that the project has the best possible chance of success. The whole development team’s background and experience are a huge piece of that, along with the location and market, obviously.
When you get the whole team involved early to collaborate on the design, constructability, and programming of a community, it saves significant time and money that could potentially be spent on redesign if everyone doesn’t have a voice early in the planning process. Having an experienced General Contractor engaged early will help you know right away if the conceptual or schematic drawings align with your budget. If not, they can suggest adjustments to structure, mechanical systems, etc., to help bring it in line and then stay involved throughout the design phase to make sure things stay on track. Your operator can also provide early input on the programming, layout, unit mix, amenities, etc. It’s always best to get the whole team on the same sheet of music as soon as you can.
So pick the right players, get them involved early, and set yourself up for success!
Don Diedrick
Director of Business Development
The Douglas Company
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