This project is the development of a 72 bed memory care community located in Modesto, CA. Modesto was a clear choice because of the specific location of the site. The site is located across the street from the area’s largest, principal hospital, Kaiser Permanente-Modesto, which provides residents and their caregivers the assurance that high-quality medical services are nearby Additionally, the Modesto site is located near a plethora of amenities that residents, caregivers, and their families can enjoy.
Modesto is the county seat and largest city in Stanislaus County with an estimated 530,000 people in the county. Approximately 12% of the 530,000 people are over age 65, and that number is expected to grow to 14% in the next five years. Furthermore, the Modesto site is located in an area experiencing high growth and development within Modesto. There are currently plans to build a hotel across the street from the Modesto site.
In the Modesto market area, our partner estimated, as of 2015, that there are 63,945 people ages 65-85+, which is allocated as follows – 36,935 people ages 65-74; 18,873 people ages 75-84; and 8,137 people ages 85+. Looking ahead, the 2020 projection shows an overall increase of people ages 65-85+ of 11,084 (17.3%), which is again allocated as follows – 8,039 (21.8%) increase of people ages 65-74; 2,812 (14.9%) increase of people ages 75-84; and 233 (2.9%) increase of people ages 85+. The Modesto market displays strong overall household income levels and housing values. The average household income level is approximately $61,000 as of 2015, and the average house value is approximately $218,000.
Our partner’s study of the Modesto market shows that it is in dire need of new Senior Housing options. Currently, the average age of competitors within the market is 31 years. The primary memory care facility in the Modesto market has been around for 17 years and is 98% full as of March 1, 2016. Our partner intends to offer a higher-end service to their residents because the primary competitor in this market is offering lower-end services.