Saturday, September 2, 2017
Manhattan is poised to become a testing ground for a real estate boom fueled by aging seniors with significant wealth. A handful of developers are spending hundreds of millions of dollars on lush, assisted-living residences. The gamble these developers are taking rests on a belief that there are plenty of underserved residents wanting their product and with the ability to pay up to $20,000 a month for rent. The gamble may not be too risky, as no new assisted-living facilities have opened in the immediate area since 2005.
The buildings will feature amenities familiar to those accustomed to the trappings of wealth: uniformed doormen, lush gardens, limestone exteriors, and marble interiors. Unique to these buildings will be a number of special features, like sharply contrasted wall and floor colors, incorporated to help the elderly and memory impaired with day-to-day activities. The developers’ goal is to create an environment with which the affluent are already accustomed, but with the additional services required by an aging population. Thomas DeRosa, CEO of Welltower in Toledo, Ohio explained, "If you've lived your whole life in a limestone-clad building on the Upper East Side, this will not feel alien to you. This building should feel like a seamless part of the community that someone would have experienced for the last 60 to 80 years."
See Manhattan Gets $20,000-a-Month Homes for New Breed of Seniors, Newsmax, August 21, 2017.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.