Senior Living Management Case Studies
12 Oaks Success Stories
EL PASO, TEXAS
In January 2012, an investment group purchased an underperforming portfolio of four communities in El Paso, Texas. The opportunity represented a portfolio of 387 beds across four communities involving independent, assisted living and dedicated memory care. Due to an established relationship based on proven performance, 12 Oaks was selected as the senior living management company for the communities
Recognizing that the communities were suffering from a lack of attention, 12 Oaks proposed to manage the communities, implementing its high-touch model through limited geographic management and focused, prospect-centered selling.
The key to the strategy under the limited geographic model was to locate a Regional Vice President of Operations in El Paso. This high-touch model provided the Regional VP with the opportunity to truly understand the market, support the leasing counselors and the implementation of prospect-centered selling, and to be on site leading and directing operations through the executive directors in support of community department heads, allowing the communities and local teams to respond to challenges in real-time.
12 Oaks delivered results. In the first 4 months of 2012, capacity at the 56-bed community went from 66% to 100%. It took 10 months for the 96-bed community to go from 79% to 98%. In 5 months, capacity at the 130-bed community went from 82% to 91%. At the struggling 105-bed community, capacity went from 46% in January of 2012 to 76% in December of the same year. Under 12 Oaks management, the NOI increased from 1.88M (Oct. 2011 T-3) to 2.6M for 2014 (FY), an increase of 39%.
BROKEN ARROW, OKLAHOMA
In June 2018, 12 Oaks was engaged by ownership as the senior living management company for a 105-unit Assisted Living and Memory Care community in Broken Arrow, Oklahoma. The property was suffering from a slow lease-up trajectory in an overbuilt market under previous management.
12 Oaks proposed to increase lease-up velocity through the application of its management philosophy, including implementation of its high-touch model, limited geographic management, optimized culture, targeted marketing and prospect-centered selling.
The assigned Regional Vice President of Operations and select consultants from 12 Oaks Solutions quickly assessed the performance of key on-site leadership, operations and current property culture. A strategy for implementation was developed and the 12 Oaks senior living management and operations team went to work.
As with all assisted living/memory care communities, three main components must be maximized to achieve a high leasing velocity. These components are quality facilities, qualified leads and proper staff execution. These three components are further observed in the overall property environment, also known as culture.
12 Oaks boosted competitive advantages relative to the primary market area. Qualified lead traffic was maximized through sufficient spend in key areas (traditional advertising like mail, newspaper, etc., and additional advertising including an online presence and targeted television spend). Shortly after taking over, 12 Oaks assessed and revamped the marketing and leasing team through new hires and training in prospect-centered selling to maximize closing ratios.
Upon engagement, the senior living community occupancy was 55%. A year later, under 12 Oaks leadership, the community achieved 88%. For the 12-month period ending in October 2019, the community averaged 6.5 move-ins per month. During the first 12 months of 12 Oaks senior living management, monthly revenue increased from $291,000 to $465,000, a gain of $174,000 and monthly net operating income increased from $5,000 to $105,000. The results represent a successful application of the 12 Oaks Targeted Marketing Strategy.
A venture company acquired this uncompleted 209-unit Independent Living, Assisted Living and Memory Care community out of bankruptcy in Longview, Texas. 12 Oaks was engaged as the senior living management company for the pre-opening, lease-up and ongoing operations of the community. Upon completion of construction of the Independent Living portion, operations began on site in September 2017. Construction and licensing of the Assisted Living and Memory Care portions were subsequently completed, and those buildings opened in April 2018.
Through its proven behavioral-based interviewing techniques and psychometric testing, 12 Oaks assembled a staff that exhibited a strong connection to the 12 Oaks core values. Training included the application of prospect-centered selling to maximize closing ratios for the new, lease-up community.
As a large, Independent Living, Assisted Living and Memory Care community, it was important to maximize the three main components for high leasing velocity: quality facilities, qualified leads and proper staff execution. These three components are further grounded within the overall property culture. The property was able to boast competitive advantages relative to the primary market area. Qualified lead traffic was maximized through sufficient spend in key areas such as traditional advertising (mail, newspapers, etc.), additional advertising including an online presence and a targeted television spend. The efforts produced adequate qualified leads and combined with an extraordinary closing ratio driven by the Executive Director and the marketing and leasing staff, occupancy quickly grew even in a highly competitive market. Utilizing prospect-centered selling, which includes relationship-based training, the community staff achieved excellent lease-up velocity.
One year after opening, the Independent Living portion had achieved an occupancy of 55%, representing an average of 4.3 net move-ins per month. Ownership elected to exit and sold the community in January 2020.
At sale, even with the seven-month delay in the opening of the Assisted Living and Memory Care portions, the community boasted an overall occupancy of 73%. The community had a stellar inquiry/move-in ratio of 23% compared to the industry average of 12-15%. The community averaged 10 move-ins per month over the 18-month period ending December 2019. It represents another successful implementation of the 12 Oaks senior living management philosophy, solidly impacting lease-up and value creation.