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Market Feasibility Study

Preliminary Market Study

A preliminary market study is an abbreviated market study but provides a satisfactory assessment of the markets potential for seniors housing development. The most recent demographic, household income and seniors housing data estimates of the initial new unit demand and viability of a possible assisted living, memory care or independent living community. You also receive preliminary forecasts for rental rates seniors can afford by apartment quantity; the size of the market area seniors will come from; estimates for future senior population trends; important market penetration rates; and initial competitive information. A preliminary market study is suitable for presentation to investors and to initiate favorable dialogue with lenders.

Comprehensive Market Study

A thorough, on-site analysis of the market using primary and secondary research methodology. Most experienced seniors housing owner-operators conduct this type of market study before investing significant capital into a seniors housing project. More accurate apartment demand estimates are provided along with physical inspection of competitive product and their strengths and weaknesses. Intrinsic information is determined such as market penetration; absorption and lease-up timeframe; planned new projects in the area; and apartment unit demand by household income. Interviews with senior service providers and an examination of the economic / business climate is conducted.

Multi-Site Comparative Study

Developers of assisted living or seniors housing communities often wish to identify several potential development locations in a market area or large city. This type study evaluates and compares the strengths of multiple locations. Each potential site evaluation determines how many apartments are needed or 'in-demand.' Developers then evaluate which locations have cooperative local zoning and favorable real estate prices. Then 1 or more locations can be targeted for development. If a developer already owns property, then a Preliminary or Comprehensive Market Study is best.

PROFORMA - Financial Forecast

With a favorable market study, a Proforma can be developed. Langworthy Company's financial forecasts include all construction and startup cost estimates including working capital to reach breakeven on cash flow. Profit and Loss results are exhibited on a Statement of Income expressed in EBITDARM and cash flow. The financial forecast accompanied by a favorable market study is usually required by investors and lenders including HUD and EB5 programs.