How we think
A business with real estate attached
Our firm started in multifamily. People who know us from that work often ask how senior living is different. The honest answer is that it is a different kind of thing.
What an apartment community is
An apartment community is mostly real estate, with a small business inside it. Residents rent a place to live and largely take care of themselves. The work is leasing, maintenance and management.
What a Mansion is
A Mansion is the reverse: an operating business with real estate attached. On top of the building there is care, meals, housekeeping and a team on site around the clock. Clinical care comes from licensed third parties who visit residents on site.
That means the quality of the operation decides the quality of the community. A beautiful building run poorly is not a good place to live.
Why the operator comes first
In our view, this makes the operator the most important decision in the whole project, more important than the site or the structure. So we started with the operator. Our strategic partner's Mansions in Texas are built, open and operating today, and they join our Arizona communities as an equity partner and consultant.
What we carried over from multifamily
Some things do not change. We still start from real operating numbers instead of projections. We still stress test: we run the numbers again with lower revenue and higher expenses than we expect, to see whether the project still works. And if it does not, we walk.
We also carried over how we treat investors: education first, plain reporting, and risks disclosed alongside everything else.
What this means for investors
An operating business has more moving parts than a rental property, and it carries its own risks, including development, licensing, staffing and lease-up. Anyone considering this kind of investment should understand that it is a business first. That is why we explain the model before we talk about anything else.
Follow the build.
A short note when something real happens. No pitch.