The Ultimate Luxury Senior Living Facility To Be Build In Midtown Manhattan
When completed rooms are expected to cost up to $20,000/month.
Twenty grand ($20,000) a month for a room may be a little further than most pensioner’s social security checks can stretch to, but that is the princely sum elderly residents will be asked to pay in a soon to be built Midtown Manhattan assisted living facility.
Development Firm Hines along with health-care facilitator Welltower plan to convert an an old TGI Friday’s at 677 Lexington Avenue into an ultra-luxury senior housing facility. They paid $115 million for the parcels that make up the site. Plans filed with the DOB have given the project, which is designed by SLCE Architects, the go ahead. The new building will be 17 stories high with 151 units. It has been reported that the apartments will be “inspired by classic Park Avenue apartment houses,” many with their own private terraces.
Other amenities will include a salon, a ground-floor outdoor plaza, an exercise facility, an art room, and a top-floor terrace. The moniker “One57 of assisted living facilities” has been bandied about in reference to the high-end nature of the facility which will sit just behind the much-vaunted luxury high rise tower, 53W 53rd St by designed by famed architect, Jean Nouvel.
Manhattan is one of the few places where such an expensive facility could exist because of the number of wealthy clientele and the relatively small number of such places available.
“This is a place where these people can be reminded of things in their past, potentially by the design of the building and by the location of the building and have a significantly better quality of life,” Thomas DeRosa, chief executive of Welltower, which has 72 senior housing properties in the tri-state area told the Wall St Journal.
For many seniors who grew up in New York, the idea of leaving doesn’t appeal. Those that can afford to pay almost a quarter of a million dollars per year, will get the chance to see out their final days in luxury. It’s a trend that looks set to continue. According to New York City’s Department for the Aging, the population of people over 60 in the city increased by more than 12 percent between 2000 and 2010, and is projected to grow by more than 35 percent by 2030, to 1.84 million people. Certain Manhattan neighborhoods such as the Upper West Side have already achieved NORC (“naturally occurring retirement community”) status.
“For Hines, what we liked about this as an economic matter [is] it’s on a demographic curve and not an economic cycle,” said Tommy Craig, senior managing director at Hines, which will make its first foray into senior housing with this Midtown development.
Facilities such as Hines are viable in New York in part because property values have increased so much. When seniors decide to sell high net worth homes such as brownstones or luxury apartments, which in many cases they own free and clear, there is the opportunity to have their medical and personal needs catered to. Marketing is a big driver for these facilities, not just to senior citizens but to their children who often make decisions on their parents’ behalf.
As people live longer, senior housing is rapidly turning into lucrative real estate investment, particularly in Manhattan with its access to shows, museums and restaurants.
Maplewood Senior Living and its partner Omega Healthcare Investors Inc., a real-estate investment trust focused on the long-term care industry have five buildings for their site on Second Avenue between East 93rd and East 94th streets. They plan a $246 million senior-housing high rise there with apartments and specialized services, including care for those with varying levels of dementia. The project will also have an indoor pool, beauty salon and terrace.
“Even knowing there were high barriers to entry, we stood our ground and decided that was a market we wanted to be in,” Mr. Smith said.
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