Developers respond to aging workforce with senior housing
Alex Kacik
The Tri-Counties are preparing for the silver tsunami.
The oncoming wave is the surge of the country’s aging workforce. Nearly one-fifth of the U.S. population will be 65 or older come 2030, according to the U.S. Census.
There are dozens of housing developments in the pipeline throughout the Tri-Counties that aim to accommodate the rapidly growing demographic.
“The demand for senior housing is pretty significant and will likely continue,” said Winton Berci, an associate at the real estate brokerage company Marcus & Millichap’s Oxnard office.
The city of Santa Barbara’s Architectural Board of Review approved on Dec. 14 a 58-unit affordable senior housing development at 3869 State St. spearheaded by RRM Design Group Principal Detty Peikert.
Peikert is also behind another senior housing development at 251 S. Hope Ave. in Santa Barbara. That project would provide 89 studio apartments for low-income seniors.
In Oxnard, a 70-unit senior living facility slated for 2300 E. Pleasant Valley Road proposed by Moorpark-based developer Vince Daly of Dansk Investment Group is moving forward. It is one of 11 senior housing projects underway in Ventura County, according to data from Marcus & Millichap.
The Towbes Group is developing the Westgate senior housing development that would add 189 units near Blosser and Battles roads in Santa Maria.
John Madonna plans to build a continuing care retirement community in San Luis Obispo that includes 350 residential units for seniors.
In addition, the office building at 5464 Carpinteria Ave. will be converted to a 76-bed senior living property. Irvine-based Steadfast Companies purchased the property for $10.7 million.
Senior housing developments will continue to draw capital and sales of those properties will remain robust, according to Marcus & Millichap’s most recent senior housing report.
“Independent living properties remain popular with investors and patio homes and duplexes are emerging as top contenders for investment,” the report reads. “In addition, the assisted-living segment is gaining traction as low interest rates fuel trades and an increase in activity.”
While the Federal Reserve increased interest rates a quarter of a percent on Dec. 16, several of the region’s economists do not expect the slight bump to deter development.
Property values up
Assessed values of tri-county properties grew by about 3.8 percent from fiscal years 2014-15 to 2015-16, according to the California State Board of Equalization.
The BOE published a report on Dec. 14 that outlined significant gains for San Luis Obispo County property values, which slightly outpaced statewide growth. Property tax revenues, in large part, fuel city and county coffers.
“San Luis Obispo County’s growth in locally assessed property was especially strong,” BOE Board Member Fiona Ma said in a news release. Locally assessed property includes things like commercial developments versus state-assessed items such as railroads and utilities. “This appears to reflect how the economy is coming back better than ever in California’s coastal communities.”
San Luis Obispo County’s total assessed property values increased by 6 percent, from $45.8 billion to $48.5 billion.
Santa Barbara County’s grew by 2.4 percent, from $71.9 billion to $73.6 billion. Ventura County’s bumped up 4.1 percent, from $115.6 billion to $120.4 billion.
Only two counties in the state posted a year-to-year decline in value; most grew more than 2 percent. Property values grew by 5.9 percent statewide, increasing for the fifth consecutive year.
Thousand Oaks lands Ferrari
Ferrari will be coming to Thousand Oaks in early 2016.
Mattioli Automotive Group recently purchased the retail showroom at 3195 Willow Lane for close to $2.8 million, according to property records.
Ferrari plans to renovate the location, which was formerly occupied by a bicycle store and spa retailer.
• Contact Alex Kacik at akacik@pacbiztimes.com.
