Presales of a Life Plan Community / CCRC
The Terraces at Los Altos, Los Altos, CA
ABHOW’s first community, Pilgrim Haven, was built in 1948 in Los Altos, California. It has served hundreds of residents throughout the years with on-site residential, assisted living and skilled nursing services.
As with many retirement communities, the physical plant did not represent the quality of care and services that was provided by the qualified team members. Because the community was fully occupied, the major renovations took place in two phases.
Phase I of the comprehensive Master Plan included 30 skilled nursing suites and 16 memory care suites, while Phase II would encompass 81 residential apartments and an additional 30 assisted living apartments, plus many other amenities on a new campus.
Presales of 75% of the 81 available residential living apartments were needed to fund the Master Plan. Because the physical area was very limited (on approximately six acres), ABHOW had to build on the only open space available.
Teri Conklin from Seniority was selected by ABHOW to manage the pre-sales efforts for the new Master Planned community. In conjunction with ABHOW, the decision was made to rename the campus to The Terraces at Los Altos to be in alignment with the corporate branding goals and as a tool to educate the greater market of the major renovation that the campus would become.
At the end of Phase I, the residents from the original skilled nursing apartments were moved into the new health care building. When the new assisted living building is complete, the old assisted living area, the adminstration building, and the majority of the remaining residential living apartments were torn down to make room for the new residential living apartments and common spaces.
Working closely with the team, Ms. Conklin managed the financial proformas to project the number of apartments that would be taken out of inventory, and identify apartments that would be occupied and sellable throughout the construction process. In addition, Ms. Conklin devised the pricing parameters for the new product once the new campus opened.
Ms. Conklin secured a sales office, hired a new product sales team, and initiated a presales strategy called the Priority Program.
Within nine months during the Priority Process, the new Terraces at Los Altos development had 565 Priority Members. For the Conversion Process, TLA obtained a 10% deposit (valued at over $61 million, sitting in escrow) on 61 apartments needed for funding –– ahead of schedule. The entire process was accomplished while maintaining 94% occupancy for the existing campus.
The product was well received by the greater community. Los Altos is a very small community with a keen interest in the redevelopment. Ms. Conklin continued to work through outside legal counsel and the local City in monitoring the Below Market Rate marketing while selling the full market rate product.
On June 20, 2017, The Terraces at Los Altos celebrated the completion of its $100 million multi-phase project for this newly renovated continuing care retirement community. The project provides its current residents with a variety of different options and amenities while also meeting the needs of a new generation of older adults.
“When you have a community that is this well-established and is undergoing a lengthy construction project, it’s often difficult to achieve traction among potential residents. But Teri Conklin and her sales team guided us through a very successful pre-sales campaign. They just did a great job!”
– Pamela Claassen, CFO, HumanGood (formerly ABHOW)