Fort Myers

Has Dana do a good business line researching his preferences? part Dana did not consider the set potential of other property types, he did a good job researching his wefts for elder do facilities. His analysis included regional analysis (comparing other cities and counties to Fort Myers), cosmos trends, Fort Myers health complaint statistics, intentness and competitor analysis (by viewing a consultant report), support alternatives and financial analysis.Together, the information provided a thorough overview of his options at heart elder address. 2. How do congregate care and support invigoration facilities disagree? They differ in client profiles, ownership, elder decision to join, work, physical environment, pricing and financing needs. Client Profile assemble care facilities typic eithery targeted younger elders (aver period old age 78) that were independent and more than upscale. aid lively facilities typically targeted older populations (average age 83) that we re frail and needed assistance with two to four activities of daily animateness.Ownership Congregate care facilities redeem high entrance fees, which are sometimes refundable upon move-out or death, and are similar to buying a unit in a condominium. Owners also pay monthly fees that cover certain supportive attend tos. sr. Decision While the decision to move to a congregate care readiness is often a life-style choice, moving to assisted living facilities is often more often a need driven option for elders. Services Congregate care facilities typically adjudge fewer services such as 24-hour supervision, one meal/day and concierge services.Assisted living facilities typically confine more services, such as more meals, housekeeping, laundry and ad hominem care services. Physical Environment Congregate care facilities are typically more like mountainous residential condominiums, offering full sizing apartments with kitchens. Assisted living facilities are small residents with modifications, typically a smaller apartment with a kitchenette. Furthermore, congregate care units urinate a overmuch higher level of finish in the units and in the common areas.Pricing While congregate care facilities are cheaper because they offered fewer services (price range $1,500 to $2,500/month), assisted living facilities are more costly ($2,400 to $4,000/month). Financing Needs Since it would get under ones skin close to a socio-economic class to build after getting through with(predicate) the permitting and perhaps another year to sell out, congregate care facilities mandatory short-term established construction financing. However, assisted living projects required long-lasting term financing since they were more like profligateal properties than condominiums for sale. 3.What are the advantages and disadvantages of to individually one of Danas options selling the land, congregate housing or assisted living? Land If Dana were to sell the land, he would view to find another living arrangement for his parents and he would miss out on a profitable business opportunity. However, the advantage would be cashing out relatively quickly with $850,000 after all commissions. Congregate Housing (Delays) If Dana pursued the congregate housing option, it would mesh longer to get any returns since he would need an additional year to sell the units. Costly) Furthermore, the hard costs for congregate care facilities typically ran 20% more per square foot than those of assisted living facilities because of the more expensive materials, higher level of finish, more casework, larger kitchens and bathrooms and better appliances, plumbing and vanities and more elaborate common areas. (Feasibility) Additionally, it would be difficult to sell the units at the estimated prices and deep down the projected time frame since Fort Myers did not seem to have a strong upscale foodstuff.Hence, it was not clear that the Fort Myers market could support the required pri ces for congregate housing units. As a result, Dana would have high unit costs with congregate housing and a bound market. However, the advantage to a congregate housing option would be building fewer units (50 versus 80) and services, and more returns in a shorter timeframe after selling the units. Assisted Living Facility While a longer term enthronement with rental income and no sales in the short-term, the assisted living option provided a profitable opportunity given Fort Myers demographics.It would be cheaper and close to likely faster to build compared to congregate housing and had a large market in Fort Myers. While it is probably not workable to capture the full potential gross income from a congregate care facility given the higher price and time to sell, tables 1 and 2 below attempt to compare the PGI in the first year of rent/sale from a congregate care and assisted living facility. If all units were sold within the first year (which is highly unlikely), a congregate care facility would provide more cash upfront with a smaller amount of monthly income moving forward.However, the assisted living facility has a higher annual PGI after the first year. Ideally, assuming a market was available for congregate care, it would take roughly 20 eld for the income from assisted living to reach the income received from congregate care. put off 1 yearbook PGI Congregate Care Facility board 2 Annual PGI Assisted Living Facility 4. Given the assisted living option, what does the developing reckon look like? What is the operating(a) income statement using constituted and imposeation-exempt debt? What are the initial returns on cost and rectitude for each option?Assuming that the budget for stodgy and tax-exempt debt is the same, the development budget would be roughly $8. 85 million for the assisted living option. circuit card 3 below provides more details on the development budget. Table 3 Assuming the potential gross income outlined in Tables 4 and 5 and the financing costs outlined in Table 6, the operating income statement using conventional and tax-exempt debt is summarized in Table 7. Table 4 Annual Rent PGI Conventional Financing Table 5 Annual Rent PGI Tax Free Financing Table 6 Financing Alternatives Table 7 Income StatementThe initial returns on cost for the conventional debt option is 11. 22% while the initial returns on cost for the tax free debt option is 10. 25%. The initial returns on equity for the conventional debt option is 17. 86% while the initial returns on equity for the tax free debt option is 43. 99%. Table 8 below provides more details on the initial returns. Table 8 5. Which option should you pick and why? If you subscribe an equity partner, who would you remove and why? I would choose the tax free dept option because it would require a smaller equity commitment, hence providing a larger return on equity.If I were to choose an equity partner, a friend or family member with experience in the ass isted living option would be ideal since they would bring industry experience to help operate and manage the facility, and I would trust that the compact would be a long term investment on both ends. Together, we would have industry experience in development and assisted living, and already have a collegial relationship. 6. Should Dana place his parents in his project? If you have had experiences in this area with your own parents or grandparents, you may include these experiences in your discussion.How do other societies handle the issues of the elderly? Since Dana could be surer of the quality of service offered, he should place his parents in the project. This would help to fill the typical five percent vacancy rate and he would avoid paying fees for their care elsewhere. Many other societies provide home care for their elderly since they have more of a collective approach to family responsibility and often have care takers in the home. This is especially true in developing cou ntries, such as Liberia and Nigeria, where I am from originally.