Experience Senior Living is advancing new development projects in an effort to capitalize on new senior living demand in the years ahead.
The Denver, Colorado-based senior living operator first came on the scene four years ago with four new-build senior living communities in the Midwestern states of Illinois, Indiana and Ohio. All of the communities but one are now stabilized, according to President Phill Barklow.
“By the end of this year we anticipate the entire Midwest portfolio will be stabilized,” Barklow told SHN during a recent interview.
Regarding occupancy, Barklow said 2024 has been a successful effort, with “most, if not all,” communities the company manages at or near full capacity.
Now, the company is moving forward with its next chapter of growth. Along with its Midwest portfolio, Experience also operates communities in Colorado, Florida, Virginia, with six new communities under development. That includes two in progress in Colorado, one in Washington, two in Florida and one in Maryland.
“We’re designing buildings for the future to attract younger, more independent residents and early adopters of senior living that stay longer and happier, because that really is the secret sauce in this success,” Barklow said. “We’re focused on the customer of the future and moving our way up the funnel to a younger, more active population.”
Development pace quickens with next generation in mind
With a lack of new supply paving the way for active developers able to stomach higher costs, the time has come to pursue development based on Experience’s strong track record designing, building and managing communities, Barklow said. That is despite higher construction materials and debt costs.
The industry’s lack of newly built communities is underscored by the fact that 44% of properties surveyed in NIC primary and secondary markets are over 25 years old. That creates opportunity for those willing to push development forward now, even ahead of institutional capital jumping off the sidelines and pushing new development plans following recent Fed action to reduce interest rates.
“Having properties that are 10 to 15 years old in a real estate cycle is a lifetime, especially now through the increased need for IT infrastructure and the needs we saw arise from the pandemic,” Barklow said.
In the next six months, Experience has five new developments set to break ground, including two communities part of its Reserve Collection brand in the Washington, D.C. area. Both communities are high-rise concepts, with one spanning 15 stories and the other spanning 20 stories. Additions to the D.C. market have taken “six to 10 years” to get out of the ground, Barklow added.
In Falls Church, Virginia, Experience has a waitlist of 400 prospective residents, along with a waiting list for its Bethesda, Maryland, project. Of those sign-ups, Barklow said prospects are mostly in their 60s, reflecting the company’s focus on younger senior living residents.
“We’re onto the baby boomers, their desires, their demands and the lifestyles that they want to live,” Barklow said. “It’s totally different from the previous generation and we want to be there for them to meet that lifestyle choice.”
To capitalize on younger residents inquiring about senior living, Barklow and Experience are taking a multi-brand approach to meet a wide swath of demand through active adult, middle-market, upper-middle market and luxury branding. Of the new projects under development, two will fall under the company’s Gallery brand, offering full continuum care in the Baltimore area and in South Tampa, Florida.
Three communities will be part of its Reserve branded communities that will be high-rise luxury properties in urban locales in the Sarasota, Florida, and D.C. markets.
With market research and data capabilities from Experience’s parent company NexCore Group, national real estate investment and development firm, development projects are selected for certain markets where data shows future demand will come, Barklow said.
“We get access to different data than most and we have an in-house data analytics team that crunch the numbers of every market that we go into,” Barklow added.
Using data has helped the company achieve stabilization at communities faster than in the past, Barklow noted.
Experience’s fast-paced development is facilitated in part by how it secures external investors, something that’s strengthened by the extensive development and management resources available through its relationship with the NexCore Group, Barklow said.
“We’re transparent about how challenging this business is and when we have successes, but much more importantly, when we have failures, in what we’re doing about it, and we’re just rolling up your sleeves and fix it,” Barklow said.
After the dust settles in the current development pipeline, Experience will sit at 21 communities in its portfolio. Currently, Experience has 16 communities open nationwide.
Improving recruitment, employee satisfaction key to sustaining growth
One way that Experience has been able to achieve some of its growth objectives in 2024 centers on hiring leadership positions at the community level, and Barklow said the company has made progress hiring executive directors and regional leaders. In April, Experience also welcomed Sunrise Senior Living Vice President of Operations Lisa Thompson as Senior Vice President of Operations, an executive-level hire that Barklow said helped improve staffing this year.
“[Thompson] is a great addition to our overall team,” Barklow said. “The industry always comes down to people and we’ve made some great decisions in hiring at the property level that have improved our operational support.”
Experience is continuing to focus on improving recruitment processes for frontline employees. Specifically, the company is looking for new ways to create an attractive work environment for prospective employees. The frontline employee experience is something that’s been complicated in the last four years as senior living residents enter communities with higher acuity and stay at communities shorter than in years past, Barklow said.
“It’s hard when people are moving in and moving out within 90 days,” Barklow said. “That’s really tough on people’s spirits.”
Going forward, Barklow said Experience would continue in its quest to develop new, and continue to forgo acquisitions or third-party management opportunities due to some of the challenges associated with bringing older buildings into a competitive state to attract new residents, Barklow said.
As operators weigh intergenerational living options, Barklow said senior living operators must adapt amenities and spaces to meet younger resident demands. That centers on developments including multiple dining venues with public-facing components to drive intergenerational connectivity between residents and the public.
Residents this year and in the future will continue to desire a multitude of lifestyle amenities and dining menus that offer organic ingredients – and that will continue to be top of mind for Experience.
“We’re committed to the lifestyle our residents are used to and we’re willing to do that,” Barklow said. “2025 is all about getting the bench strength ready and taking care of our employees and investors.”
