The News & Observer (Raleigh, N.C.) David Bracken column
By David Bracken, The News & Observer (Raleigh, N.C.) | |
McClatchy-Tribune Information Services |
By the end of this month, Brown said,
The Cardinal will be a continuing care retirement community, or CCRC. The communities offer a range of medical services -- skilled nursing, assisted living, independent living -- that let residents stay in one place as their needs change. The state regulates CCRCs to ensure that residents are receiving proper care and to make sure the projects are financially sound.
The industry struggled during the recession, in large part because of the downturn in the housing market. Many CCRC residents finance the move by selling their home.
Tied to housing
Brown said the housing recovery over the past 18 months has helped boost demand.
"The strength of the housing market is a big indicator for us as well as the job market because a lot of adult children participate in this decision," he said. "Those two things in
The Cardinal would be the second CCRC to be built in
SearStone, a 169-unit community in
The Cardinal will also face competition from The Cypress, a CCRC in
Different models
The Cardinal, SearStone and The Cypress represent three financial models that are popular in the industry. SearStone requires residents to pay a minimum entrance fee of
The Cardinal will be a rental model. To secure a residency, a resident has to put up two months of rent and service fees. The average deposit at The Cardinal is between
Although The Cardinal will require a lower initial investment from residents, they won't receive any equity in return.
"We believe it's where our future customer wants to be, in the midst of a setting like this where they can literally walk out their front door and have all the benefits of
Bracken: 919-829-4548 or [email protected];
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