- Proven Upside by Taking Rents to LIHTC Max Allowable
- Limited Senior Housing Options in Edmond and Stillwater Submarkets
- Significant Demand for Affordable, 55+ Independent Living Housing
- Prime Locations with Amenities for Seniors
- Offered Free and Clear of Existing Debt
Proven Upside by Taking Rent to LIHTC Max Allowable Rents
Ownership has taken approximately 40% of units across the portfolio to LIHTC’s 2023 max allowable rents. By February of 2024, every resident will be at either 2022 or 2023 max allowable rents. Since 2018, the Oklahoma City Metro and Payne County have experienced a 4.4% and 3.6% average annual rent increases respectively. A new owner can reasonably expect maximum allowable LIHTC rents to increase and be captured in 2024 and beyond as proven by current ownership.
Limited Senior Housing Options in Edmond and Stillwater Submarkets
In recent years, research shows the population of senior citizens has expanded significantly as the number of residents in the 55+ age group increases. The city of Edmond has only 7 existing 55+ complexes totaling just 600 units. Furthermore, Edmond has only 2 Affordable senior complexes in the entire city including the subject property. There are currently no proposed 55+ developments in Edmond, and according to “World Population Review,” there are 13,623 seniors in Edmond.1
Likewise, in Stillwater, there are only 6 properties totaling 530 units that provide 100% affordable units above the 50-unit threshold. Of those 6, only 3 (including the subject property) cater to the age restricted demographic which provides Stillwater with only 186 units of this product. According to “World Population Review,” 4,728 seniors reside in Stillwater.2
Demand for senior housing in each submarket is strong compared to existing supply and shall continue to increase until we see projects deliver. Current interest rates and construction material costs make it difficult, if not impossible, to build new products and compete with existing rental prices.
Significant Demand for Affordable, 55+ Independent Living Housing
The U.S. active adult (55+) community market size was valued at $565.3 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 4.01% from 2022 to 2030. Increasing demand from baby boomers, reduction in the stigma of retiring, and growing interest of investors in senior living facilities are driving the market. Additionally, many 55+ workers elected to retire early due to Covid-19, which has led to increased demand in the short-term as well.
