Lloyd Jones Founder, Chairman, and CEO, Chris Finlay, was a featured speaker at the “Outlook on Active Adult from the C-Suite” panel during Senior Housing News’ Active Adult Virtual Summit (July 15, 2020). Here are the key takeaways from his talk:
- Finlay believes that an all-rental model holds untapped potential for developers and residents. As seniors age in place, with the addition a la carte services as needed and emerging technology, they’ll be able to enjoy an elevated quality of life for longer.
- The rental model will also meet the growing demand of seniors who want to sell their home and retain equity to better manage their retirement financially.
- To address this demand, Lloyd Jones offers its Aviva brand of active-adult living. Finlay introduced the three Aviva products.
- Aviva Cottages are a for-lease cottage product which Finlay envisions will be especially popular with seniors in suburban markets making their initial transitions from single-family homes. These single-story cottages with attached garages will surround a resort-style clubhouse where events and activities abound.
- Aviva 55 is a three- to four-story building, better suited to urban environments where lot sizes are smaller. This product is similar to a luxury apartment community but available solely to residents at least 55 years of age and will appeal to consumers looking for the lifestyle afforded by these locations.
- Aviva Independent is a more traditional independent living product, with the first building set to break ground in Port St. Lucie, Florida later this year.
- Active adult communities tend to be slow to lease-up (about six a month), but once occupancy levels reach stabilization, they tend to remain constant. In order to control operational costs in new construction during lease-up, Aviva Independent Port St. Lucie was designed to include two wings flanked by a central clubhouse, enabling Lloyd Jones to lease up one building while the other is under construction.
- The industry average for how long seniors stay in an adult active community is five to seven years, but the average stay for residents in Lloyd Jones Senior Living communities is over ten years. Residents form close, lasting friendships, and with the addition of home healthcare services and future technology, they’ll be able to stay even longer.
- Active adult represents the biggest real estate opportunity that Finlay has seen in his 40-year career, but it is also a challenging sector to enter. It requires correctly identifying the right markets to build active adult, deducing demographic trends for growth, and being ahead of the curve in terms of the services and technology that residents will need in order to comfortably age in place for the next five to ten years.