The client: Graceworks Lutheran Services Vista Place
Bethany Village is a nationally accredited, faith-based continuing care retirement community (CCRC) owned by Graceworks Lutheran Services. On the campus is Vista Place, an 11-story independent living building constructed in the 1970s.
The challenge: Aging building “impossible” to reposition
Graceworks had been told by other real estate consultants that repositioning the aging building would be impossible due to structural engineering concerns and the challenges of working vertically. Bondholders were worried that the building would never be a product the consumer wanted to pay market rates to live in and would continue to be a financial drag on the organization. Graceworks engaged Plante Moran Living Forward™️️️ (PMLF) as a development advisor to help the organization envision the solution.
The solution: Creative solutions based on data-driven insights
To address the construction challenges, PMLF performed a conceptual design analysis that demonstrated how to relocate residents to one side of the building and renovate vertically without disruption. Renovating vertically and relocating residents would give way to elevator, lobby, and common space renovations and would allow space for manipulating concrete walls into large windows on the exterior.
After running a feasibility assessment, PMLF conducted a market study to determine if there was enough depth in the Dayton market to support repositioning Vista Place into a high-end, luxury independent living apartment building. The quantitative analysis supported the repositioning, but a pricing analysis of the area showed nothing directly comparable to an independent living entrance fee. Looking at other Ohio markets allowed PMLF consultants find comparable products from which to develop the monthly service fee. Then, to help Vista Place leaders validate the project concept, layout, service offerings, and proposed pricing, PMLF conducted focus groups with qualified prospects within the market area.
The benefit: Repositioned asset with strong market appeal
This thorough analysis was presented to the board, highlighting Graceworks’ cash and market position, and was met with approval. The repositioning program broke ground in 2020 and included two phases to update the existing building to include 50 large one-bedroom plus den and two-bedroom units with large master suites, kitchen and dining spaces, in-unit laundry, and walk-in closets. PMLF oversaw approximately $10.2 million, 70,000 square feet of renovation construction and new outdoor amenities over two years as the development advisor and owner’s representative of phase one. Close to 80% of units were presold before construction concluded.
