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COMPETITIVE MARKET REVIEW Introduction nQ ""'Cl- COP'{ , V ~",r'\\ The size of the senior market, growth trends. ~~~ogr:a~,\:'s~tQ~, were examined in the previous section. That infomra\4EiIi"'elkt'~(Ytoille demand for senior housing. This section examines the current supply of market rate senior housing as well as providing a review of newer general occupancy rental buildings and pending senior projects in the Study Area. Assisted living facilities and subsidized senor proj- ects were not a part of our analysis. Overview of Senior Housing in the Twin Cities Metropolitan Area The first market rate senior housing projects developed in the metropolitan area were geared towards the frail elderly. Usually associated with nursing homes (as many new projects are today), these buildings were marketed to seniors who needed support services but who did not require the medical services or daily monitoring of a nursing home. Although still somewhat independent, these frail seniors required some sort of assistance such as housekeeping, daily check-in or transportation to stores and personal business or medical appointments. Activity programs, meals, health checks and other supportive services were usually included in the rent. Although high in cost, this type of housing was (and still is) considerably cheaper than nursing home care and far more fulfilling to seniors who still desire some independence. The oldest Twin Cities senior project opened in 1965 under the sponsorship of Heritage of Edina nursing home. Today this complex has a total of 214 units in three buildings. Sutton Place, affiliated with Presbyterian Homes and located on Presbyterian Homes' campus in Arden Hills, was the first congregate facility in the St. Paul area with occupancy in 1980. The Minneapolis area already had several such facilities by 1980 including 7500 York Avenue in Edina (a cooperative completed in 1978), Friendship Village in Bloomington (a life care cooperative completed in 1979) and $t. Therese in New Hope (rental apartments completed in 1979). Development of senior housing continued in the Twin Cities during the 1980's with greater product choice and geographical distribution. Senior condominiums and smal- ler projects with lower rents and fewer mandatory services broadened the market for senior housing. Today there are more than 9,000 units of market rate senior housing in the Twin Cities Metropolitan Area. More than two-thirds of the units in the projects are for rent, rather than for sale. Condominiums have attracted a younger senior population which still sees a value in ownership housing. Cooperatives usually have a limit .on appreciation and are frequently misunderstood in the marketplace. Rental units are the most accepted because of the lack of a long-term commitment to the project. Some rental projects such as the Boulevard in Columbia Heights require endowments or entry fees which are used to offset the monthly rents. Usually developments requiring endowments have a strong service component and are geared to the frail elderly. These are often projects with a religious sponsor as developer or owner, such as Maranatha Place in 30