Market Information
Demand
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IL, AL, and MC segments are all undersupplied.
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There are only 4 senior housing communities in Jonesboro, all of which are low to middling quality.
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Market occupancy is 92% IL / 100% AL / 98% MC. The 92% IL figure is artificially low due to one troubled property. The others are fully occupied with wait lists.
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There is current unmet IL demand in excess of 400 beds and an unmet MC demand in excess of 60 beds.
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There are no other projects in the construction pipeline.
Rates
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Achievable rates range from $1,950 (studio) to $4,900 (3 BR) and $7,000 for MC.
Demographics
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Population growth in the market is higher than the national average, particularly in the 75-84 age group.
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The unemployment rate in the market has been consistently lower than the national average.
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Estimated spending power (income + home equity) supports strong rents shown above.
Development Costs
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$208K per unit / $182 PSF, based on comps in Oklahoma, Missouri, and Texas.
Returns
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13.1% IRR (unlevered). Assumes 4 year hold and 6.25% exit cap rate.
Miller Commerce has commissioned this study to assess the market-based opportunity for a proposed senior housing community to be located in the city of Jonesboro, Arkansas. More specifically, the 5+/- acre site is located at the 2027 Bridger Road. Jonesboro is home to just four senior housing communities. And none of the communities are considered to be true luxury product similar to the proposed subject. As a result, the subject will be positioned far above the
existing inventory.
Plans are for the subject, The Murray at the Reserve, to consist of 140 independent living units and 23 memory care beds. Studio, one, two, and three-bedroom floor plans will be offered with sizes ranging from 400 to 1,400 square feet for independent living and 400 square feet for memory care. In addition, the community is anticipated to have an expansive amenities package, which in turn will competitively position above the existing inventory as well as future pipeline additions. In addition to the subject’s onsite amenities and features, it will also be adjacent to NEA Baptist Memorial Hospital. The 228-bed facility offers an array of medical services and has received numerous awards and accolades for its quality care, including a designation for nursing excellence.
The hospital also has offers home health services which can be utilized by the independent living residents at the subject. The scope ofthe assignment consists of an analysis of supply and demand conditions, an assessment of the developer’s proposed unit/bed mix, floorplan sizes, and amenity package, the determination of achievable rental rates, and a feasibility assessment.t your business. Let your visitors know who you are, what you do and what your website is all about. Double click on the text box to edit the text and add all the information you want to share.