Since 1999, the Randalls developed and built one assisted living community in the Cleveland area and purchased four additional facilities in Ohio representing over 300 units. Overall, Randall Residence currently operates six senior living residences in Michigan and Ohio and have over 40 years experience in senior care.
Based on the market data, Granger Group recognized this as a strong opportunity to develop a new assisted living facility for a highly experienced operator. Randall Residence of Tipp City will lease and operate the 72,000 square foot facility, which is located just a few miles north of Dayton. Randall Residence has entered into a 20-year, absolute triple-net lease with an option to purchase the property within the first five years. The property is the only facility in the area that is uniquely positioned in a market with demand in excess of 200 beds.
Randall Residence engaged Senior Living Solutions Group and Vogt-Santer Insights to conduct a market study identifying areas with high demand for assisted living in the greater Dayton region. The key criteria used to identify potential markets is based on supporting data that demonstrates assisted living demand is at least two times the number of units planned to be built, which is also referred to as “double-deep.” The estimate of supporting demand is based on demographic evaluation of income and asset eligibility among the targeted consumer profile, as well as other sources of income. The market analysis enables the Randalls to shorten the stabilization period and successfully mitigate the start-up operational risk. Based on the current market rents, the income for the operations provides sufficient coverage to meet the capital lease payments for the project while enhancing profitability and sustainability of the business model.