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Tellatin, Short, Hansen & Clark, Inc.

Seniors Housing and Healthcare Valuations, Market Studies and Consulting Services

"Understanding preferences for seniors housing is key to understanding demand."

- Mark Hansen

Case Study - Missoula, Montana

In 2003, we were approached by a Willow Creek Management, a northwest seniors housing developer and operator, to determine the need for new seniors housing units/beds in Missoula, Montana. Missoula is a small city with a total population of 17,744. Present in the market were several modern seniors housing facilities already catering to the independent living, assisted living and specialty assisted living (Alzheimer/dementia) markets. Market occupancy was not exceptionally strong at 94.8 percent.

The purpose of the study was to determine if there was any pent-up or excess demand for independent living, assisted living or specialized assisted living units/beds. Our fundamental demand analysis revealed that even though market occupancy was not exceptionally strong that this small community could support a new facility.

We recommended a continuum of care facility be completed with 60 independent living units, 45 assisted living units and 34 Alzheimer/dementia units/beds.

On December 22, 2004, the Springs of Missoula opened with 74 independent living and 34 assisted living units. As of September 2005, all of the assisted living units were occupied and 50.0 percent of the independent living units were occupied equating to an average monthly absorption of 8.9 units per month. The 34-unit/bed Alzheimer/dementia addition was completed in April of 2005. Occupancy was 50.0 percent as of September 2005 equating to a monthly absorption of 3.8 units/beds per month, which is an unprecedented absorption for Alzheimer/dementia units/beds.