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40 <br />11111110 <br />C] <br />9 <br />I <br />oil V111"'4 00: U1 'JUOU'Jaua7a KLUVt L 1:3 f°'04%P_ tl,* <br />Summary of Rearmed Ave 75+ Penetration <br />Ates for t ie Assisted L3�"ink Units <br />Penetration tes - Trends and f3+toe4mark3 - While there are no firm industry standards for <br />maxnnuin acceptable penetration rates for an individual project in a specific market area, an industry <br />figure of approximately 5% (market penetration) has evolved overtime and is generally considered <br />an acceptable market/development risk for independent loin units. 71ris"evolution" has generally <br />been based on the following: <br />w 6=0 households (the age screen is now considered <br />to be age 75+) <br />+ Little income screening <br />• No sophisticated competitive analysis technique <br />Now:, with more detailed and pragmatic demographic screert'ing, it is the opinion ofMDS that <br />this 5% penetration is both conservative and an acceptable markctldevelopment risk indicator • for <br />indep2ndent linin units. <br />A@sisted Living PenetratiaRate s -Assisted living penetration rates, however, are expected to be <br />higher than independent living penetration rates for any one project due to the fact that assisted <br />living typically involves a more highly need -driven situation and the typical age profile for residents <br />r <br />in assisted living is age 75 to 80 or older. Because the potential pool of prospects fee assisted living <br />is more limited than that for independent living (age 75+ wid has a need for assistance in daily living <br />t+ <br />a sen -ices), MDS' experience shows that a higher percentage of this pool of prospects opt for the <br />I <br />availability ofsuch services. <br />MDS has conducted a number of studies across the nation with freestanding assisted living <br />facilites, as uckl as assisted living integrated with utdcpandenr living, and nursing, lndividuA <br />usisted living project ptwtctration rates in v,anous markets have ranpc l fronts 1% to 7% It is our <br />opinion that, due #o these actu*Ip roject penetrattao rafts and industry tfit sdsrd+ abet let, fen <br />