Publications
Publications
- July 2014 (Revised May 2015)
- HBS Case Collection
Making Room for the Baby Boom: Senior Living
By: Charles F. Wu, Joseph Beyer and Arthur I. Segel
Abstract
Tom Alperin's National Development has purchased a building site in affluent Wellesley, MA, and is in the process of deciding whether to build apartments, a combination of independent living and assisted living units for seniors, or perhaps even higher acuity facilities.
The case describes several issues for the continuum of senior care alternatives for residents and developers. What motivates seniors to leave their homesteads for much smaller spaces? How can they afford to do so? What are the physical as well as operational challenges for operators when serving the different levels of acuity?
The case also describes what zoning issues may be faced by developers who seek to build in attractive but challenging neighborhoods. Furthermore, how can a successful operator branch out into new businesses? When should the operator form joint ventures to help them achieve their strategic ends?
Analytical tools discussed include: development metrics, impact of financing on projects, as well as analytical methods to forecast market demand.
The case describes several issues for the continuum of senior care alternatives for residents and developers. What motivates seniors to leave their homesteads for much smaller spaces? How can they afford to do so? What are the physical as well as operational challenges for operators when serving the different levels of acuity?
The case also describes what zoning issues may be faced by developers who seek to build in attractive but challenging neighborhoods. Furthermore, how can a successful operator branch out into new businesses? When should the operator form joint ventures to help them achieve their strategic ends?
Analytical tools discussed include: development metrics, impact of financing on projects, as well as analytical methods to forecast market demand.
Keywords
Senior Living; Assisted Living; Independent Living; Property; Finance; Real Estate Industry; Boston; Massachusetts; United States
Citation
Wu, Charles F., and Joseph Beyer. "Making Room for the Baby Boom: Senior Living." Harvard Business School Case 215-003, July 2014. (Revised May 2015.)