Senior’s housing used to be a niche and under the radar asset class, but that is no longer the case. Many purpose-built rental developers and investors are now looking to invest in this growing market with a unique, and competitive edge. In addition, as the oldest cohort of baby boomers just turned 80, we see this type of real estate asset well poised for strong growth. But as interest and demand is picking up, trends in seniors housing are also rapidly changing to meet the needs of a new generation of seniors who are more active, more social and prioritize wellness.
Don Mills Retirement Residence in Toronto is an exemplary model of how the approach to the private seniors housing market is shifting, particularly in urban centres. First National provided the CMHC-insured term loan for this new community. Developed and operated by Verve Senior Living, Don Mills Retirement Residence is a top-quality retirement home in an underserved local market and has achieved one of the strongest lease ups that we have seen since the pandemic. From its design to its continuum of care, Don Mills Retirement Residence demonstrates the shift away from traditional, institutional-style senior housing models to more hospitality-driven environments that combine independent living and different levels of services and care all in one property.
A holistic model for aging in place
Opened in 2023, Don Mills Retirement Residence features 94 independent living suites, 23 assisted living suites and 17 memory care suites on dedicated floors. When residents move into the community, they can be fully independent with minimal care requirements. But as their health and lifestyle needs change, there are different tiers of services they can transition to without having to move to another building. This is a very big draw for residents and their adult children, knowing they won’t have to move their parents when circumstances change.
While assisted living is not a new concept, the fact that is it combined with a premium rental community is a key to its success. In addition, Verve has integrated memory care into their operating model to provide much needed specialized care for people for advancing dementia. Memory care floors are secured floors within the building where residents have their own studio suites with round the clock care, and benefit from specialized, individualized programming in dedicated indoor and outdoor amenity spaces. The floor is also uniquely designed to ensure residents cannot wander off and leave. This is something that you would have not seen in a retirement community ten years ago and is providing important access to seniors with more advanced care needs.
Amenities that focus on flexibility and wellness
Today’s boomer demographic is redefining what it means to age. They want to stay active, independent, and are deeply focused on wellness. We are also seeing that aging boomers, particularly in urban areas, are prepared to pay for a highly amenitized, resort-like building.
In response to this need, amenities and services at Don Mills Retirement Residences include a luxurious lobby, a wellness centre with modern fitness equipment, a spa and salon, and an ancillary space for doctor visits. A resident bistro provides additional flexible spaces for residents to socialize with each other and entertain family and friends.
When it comes to dining, while each independent living suite includes a modern kitchenette, daily meals and snacks are served in a common dining room and are included in suite rental packages. Verve also recently expanded their dining options from single dining to multiple dining experiences, where people can eat in the bar bistro, and order a la carte to their room throughout the day. Suite rentals also include housekeeping and concierge services.
Larger living spaces for downsizers
Twenty years ago, if you were building a seniors housing community for independent living, most of the units would be studios at 350 sq. ft and a low price point. Today we are seeing a trend towards much larger units -- 650 sq. ft 1 bedroom as a starting point.
At Don Mills Retirement Residence suite sizes are on average 100 sq. ft. bigger than the condo market, catering to the many seniors in the areas who are downsizing from single family homes. In addition, suites are finished to a high standard, with upgraded appliances and in-suite laundry.
What can we expect to see next?
Anytime Verve starts a new project, they always look back at lessons learned and what they can try to incorporate in their next development. For example, a real shift they are seeing across all their projects is the demand for additional recreational spaces, geared towards more active clientele and their families. As a result, they are now looking at incorporating not just one but two gyms in their communities, with pools for exercise classes, as well as pet wash stations, wine tasting rooms and golf simulators.
We look forward to continuing our work with developers and seniors housing operators like Verve Senior Living and other innovators in this space, to help shape the future of the seniors housing in Canada. These partnerships will ensure that we have a continuum of living options to reflect diverse lifestyle choices and health care needs as a new generation of seniors continues to grow.
About Brian Kimmel
About Ryan Paquet