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CA Ventures And Goldman Sachs' Big JV

With over 10,000 Baby Boomers turning 65 every day, the future of senior housing is now. CA Ventures recently announced a JV between CA Senior Ventures and an affiliate of Goldman Sachs to build 14 assisted living and memory care facilities across the US, including two in the Chicago area. CA Senior Ventures COO John Dempsey took us behind the deal.

John says the initiative began with four CA Ventures projects, two in Kansas City, KS, one in Wheaton and another in Grayslake. He says CA was interested in pursuing a strategy that replicated the firm's success in the student housing and multifamily sectors. Once those four initial projects were in progress, CA approached Goldman and found the two firms share a similar vision for senior housing development; one that goes beyond the real estate itself and prioritizes resident health and wellness.

A rendering of CA Ventures' upcoming senior housing facility
in Grayslake, Ill.

To find the best development sites, CA spent time researching where and how seniors live, similar to its approach in the student housing sector. The research phase looked at demand, growth patterns, construction costs and other factors to narrow the target areas down to  eight to 10 markets. Among the patterns the CA-Goldman JV discovered: Seniors want to be close to healthcare and elder children want to be near lifestyle centers and quality schools, while enjoying proximity to their parents. Through triangulation, John says they were able to determine the most attractive locations.

As for Goldman, John says it's in it for the long haul as the housing needs of the Baby Boomer demographic will only grow in the years ahead. This is a venture into a new asset class for Goldman and it isn't looking for a quick exit. John says the communities CA and Goldman are building will be designed with options in unit size and price point to maximize flexibility and meet specific prospect needs.

Looking ahead to the next quarter century, both CA and Goldman hope to provide an alternative to what the competition is offering by creating senior housing options suited to the wellness needs (both mental and physical) and social preferences of a new generation of older adults.

That includes constantly reviewing amenity offerings at their developments. John says retiring Boomers increasingly want areas where they can socialize and keep their cognitive abilities sharp, and they want to stay physically fit. State-of-the-art fitness centers, communal gathering spots and multiple options for dining and recreation are must-haves in these communities.