Caddis of Dallas helps lead broad elder-care venture
Friday, November 04, 2011 A Dallas health care development company and an Oregon-based senior care firm are joining forces to build and operate a 90-bed assisted-living and memory care facility in Murphy, the first of more than a dozen facilities the companies plan.
Caddis Partners LLC is developing the 65,370-square-foot project, called Orchard Park of Murphy, to be operated by Eugene-based Good Neighbor Care.
“This is the first of a series of projects we’re going to do with Good Neighbor Care,” said Jason L. Signor, Caddis CEO.
Signor declined to disclose development costs on the project.
Caddis and Good Neighbor plan to roll out three to five similarly sized projects a year, Signor said. The next one is planned for Conroe, north of Houston. Caddis is evaluating sites in Central Texas and North Texas as well, he said.
Signor said demand warrants 15 to 20 assisted living and memory care facilities, and possibly more, depending how the market holds up. The aging baby boomer population is driving demand, he said. Assisted-living units in the Murphy/East Plano market have a 99 percent occupancy rate, Signor said.
Dr. Ross Stewart, director of clinical services for Brain & Body Wellness Center in Dallas, said demand will continue to grow.
“The need is growing,” Stewart said. “The baby boomers are passing through, and the cognitive decline, the dementia and the Alzheimer’s, are going to reach epidemic proportions in the next 10 to 15 years.”
The first of the United States’ 78 million baby boomers turn 65 this year, and they’ll continue to do so at a rate of about one every 10 seconds. By the time this population turns 85, about half will suffer from some form of dementia or Alzheimer’s, said Greg Gerendas, director of community relations for Brain & Body Wellness Center.
Transforming An Industry
Orchard Park of Murphy will be at the southeast corner of FM 544 and Brand Road. Construction on the single-story facility began in September and completion is slated for summer 2012. Of the 90 beds, 57 are for assisted living and 33 for memory care, which offer specialized living arrangements and services for people with cognitive impairment such as Alzheimer’s.
The McFarlin Group LLC, based in Dallas, will own the project with Caddis and 24 physician investors. Caddis and McFarlin are both real estate investment and development firms that specialize in health care facilities.
The physicians are primary-care doctors and internists and collectively have an approximately 50 percent equity stake, Signor said.
“We’re trying to transform the industry from being apartment builders who build assisted-living or memory care units to being true health care need-based facilities, driven by the actual health care providers — the physicians themselves — and incorporating their design into the facility,” Signor said.
In the Murphy facility, for example, doctors weighed in on the layout’s impact on accessibility, he said. Some of the physicians will provide clinical services as well, he said.
Bedford-based design firm Galier Tolson French is serving as the project architect for Orchard Park of Murphy, and the Dallas branch of Weis Builders is providing general contracting services.
Lease rates for assisted-living units at Orchard Park of Murphy will run from $2,400 to $3,400 per month, depending on the unit’s size and amenities, such as private patios and courtyards, said Gary White, vice president of hospitality and dining for Good Neighbor Care. The rate includes meals, housekeeping and laundry service and enrichment activities.
Memory care units, whose patients require more intensive programs and care, will run from $3,600 to $4,100 monthly, White said.
“The dining experience we create, the life enrichment experience, and the way we deliver care and services has to be relevant to the people who are in that community,” said White, a chef by training. “We have to personalize everything we do.”