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r -__X, Ity <br />programming for the new community. It should be noted that this is an area in which, if the decision <br />influencer market is appropriately and aggressively targeted, overall project risk can be signi ficantly <br />reduced, <br />Pr9iected Absuption Time <br />Frame for the Parr* used nits <br />It is the opinion of MDS that the proposed assisted living units will find good acceptance <br />within a reasonable marketing and fill -rip period. Exhibit 1-5 presents the projected absorption time <br />frames for 60 new assisted living units in the Primary Market Area. <br />It is the opinion of M -DS that 60 assisted living units could conservatively be brought to <br />93% occupancy ArithiD a 12 -month tlrne frame after construction Is complete and a Certificate <br />of Occupancy has been issued. "Phis absorption time frame is based on an average net monthly <br />absorption of five units per month for assisted living and presumes a pre -opening "in -rush" <br />absorption of 20%orthe units, or 12 units. This absorption rate is based on our national experience <br />'with state-of•the-art assisted living, the performance of new assisted living communities in the PMA <br />a and SMA as well as other similar market areas and specific expectations for the subject <br />development. <br />ns act of Tu nr ovevRates - This absorption time frame takes into consideration the potential <br />impact of turnover within this cominunity - or the refilling, of previously occupied units during the <br />fill -up phase of the absorption. Because this will be a new project, MDS has implemented two, <br />scenarios of absorption time frames. The second scenario gives consideration to a 25% turmovcr <br />far ict for the ltcu' (Sebastian) As can he seen by Exhibit <br />E1 5, this unpart extends the lets -up rates by Lpfirwtimately" two to three months. <br />