Solvida Development Group delivers an innovative and community-centered approach to meet the demand for affordable senior living residences in select regions of the country. A third of U.S. seniors earns too much to qualify for subsidized housing but not enough to afford private market rates. Solvida offers a solution that benefits individuals and the local community: converting uncompetitive hotels into affordable, resort-style housing alternatives for middle-income seniors.
Apartments Designed with Seniors in Mind
While only select hotels lend themselves to conversion, the right property can deliver extraordinary returns. The National Investment Center for Seniors Housing & Care projects that nearly 1 million additional senior housing units will be needed in the United States by 2040. Solvida will target underdeveloped and growing markets for senior housing, including major primary and secondary markets.
Leaders in Health Planning and Construction Design
With over 100 years of combined experience in the senior housing industry, we are creating a new product category by converting functionally uncompetitive hotels at 60 percent of the cost of new construction. Solvida is uniquely qualified, having completed successful rehabilitation projects including the return of capital to investors and banks through the great recession of 2007. Our real estate development model is successful for the following reasons:
- Almost no current competition for seniors earning $50-65k
- One million new senior housing units needed in the U.S. by 2040
- Success targeting U.S. secondary and retirement markets
The end product is a functional, resort-style facility offering prices up to a third less than market rates. This price point is uncontested in its property class, giving Solvida what marketers call a blue ocean market advantage for extraordinary profitability.
Revitalizing Hotels for Affordability
By converting uncompetive hotels into senior healthcare investments, Solvida provides value and a fresh and exciting product amidst tired competitors. Aside from the obvious cost benefits over new construction, our approach revitalizes communities by transforming an older hotel into an asset. Our model enables value-based pricing and a project IRR of 30 – 40%
An example project assumes a typical hotel with a resort-like feel, easy parking, high-speed internet, walk-out units overlooking lush landscaping, and a vibrant neighborhood that lends itself to exploration. Traditional business-style hotels with interior corridors provide a more secure environment when necessary.
The Opportunity: A Perfect Storm of Failing Hotels
Distressed 80s- and 90s-era hotels buffeted by the coronavirus fuel Solvida’s model for affordable private-pay senior living. Unit size, LSS, plumbing, HVAC, ADA compliance, security, neighborhood, and other factors will be carefully evaluated by our team of experienced real estate investors, market research consultants, and health planning experts. Whatever the service mix, all properties will offer prices 15 – 20% below existing market rates for new senior living construction. The Solvida Development group will target active seniors seeking a simple, secure option offering community and independence in retirement.
The senior housing market is the opportunity of a lifetime as Baby Boomers age into retirement. Successful investors will take advantage of a 10-year window. Property characteristics will be carefully analyzed in order to determine the mix of independent living, assisted living and memory care options.
Redeveloping Our Cities for Affordability
Solvida brings years of developer and management experience as well as a passion for the empowering effects of community in senior living. Solvida management and advisors offer a wealth of experience in healthcare planning experience, budgeting, marketing, and architectural prowess. Contact Solvida Development Group online to learn more about this unique investment opportunity or to recommend a hotel or other property for conversion.