A unit at the Clare costs an average one-time entrance fee of $800,000 or so, along with around $5,500 monthly fees. The entrance fee is refunded when a resident dies or moves out. Entrance fees at a typical senior living facility is around $369,000.
The 53-story Clare tower on Chicago’s Magnificent Mile has sold for $105 million, a sign that luxury senior living facilities hold huge upside in today’s market.
Fundamental Advisors LP sold the luxury seniors-only tower for twice what the private equity firm paid for the 334-unit tower in 2012, according to the Wall Street Journal.
…the Yō no Ie re-imagines a life in suburban-rural areas, rather than urban-suburban. This reflects quiet yet significant social changes – or rather, shifts in life priorities of people and how they define happiness. In the 20th century, when society was excited about economic growth, everyone dreamed of living in cities, working at big companies by navigating a world of fierce competition, either spending an eye-popping amount of money on a small urban condo that quickly became a norm, or traveling hours to commute from a more affordable home in rapidly sprawling suburbs.
The jewel-box home—small, but loaded with amenities and costly finishes—is luring more home buyers. An analysis by Home Innovation Research Labs, a subsidiary of the National Association of Home Builders, found that the number of new-construction luxury homes at 3,000 square feet or less has increased nearly 20% since 2013—with a corresponding decline in larger-size, high-price homes.
Changing demographics might be driving the trend. More than half of all households now consist of single people or couples, U.S. Census Bureau data shows—with traditional nuclear families accounting for just 20%.
“Empty-nesters want to downsize, but they want luxury homes not starter homes—luxury kitchens, marble surfaces, all the latest and greatest,” said Tim Costello, CEO of Builder Homesite, a consortium whose New Home Source website—an online clearing house for new-construction homes—tracks home buyers’ preferences.
From a Wall Street Journal article by Katherine Clark:
“If you look back in the day to the ’70s and ’80s, there were these guys…raised with this mythology of the West,” said Ken Mirr, a local ranch broker. “It was attachment to something Hollywood produced. Their children aren’t necessarily always as interested in operating the properties. Sometimes the kids just see cows and think ‘What should I do with this?’”
Operating costs vary dramatically, depending on how much infrastructure ranchers have on their land and the level of agricultural activity but can often be millions a year.
Decades ago, a generation of America’s wealthiest, raised on television shows like “Howdy Doody” and “The Lone Ranger,” headed west with dreams of owning some of the country’s most prestigious ranches. Now, as those John Wayne- loving baby boomers age out of the lifestyle or die, they or their children are looking to sell those trophy properties.