Valley Senior Living Campus Embarks on $100M Expansion

Article originally posted on Phoenix Business Journal on June 11, 2019

Sagewood is adding 101 independent living apartment units to its luxury senior living campus in northeast Phoenix — to the tune of $100 million.

Owned jointly by Des Moines, Iowa-based Life Care Services Corp. and Lake Forest, Illinois-based Westminster Capital Inc., Sagewood is a life plan community in which residents sign life-care contracts and become policyholders that allow them to age in place on a campus that includes everything from independent living to skilled nursing.

Originally known as continuous care retirement communities, life plan communities require an entrance fee and monthly service fees. Sagewood’s entrance fees range from $440,000 for the smallest apartment unit to $1.3 million for the largest apartment. Monthly fees range from $3,600 to $6,400, depending on the unit’s size of the unit, with an additional $1,648 if adding a spouse.

All these life-care contracts — regulated by the Arizona Department of Insurance — are 80% refundable, said Stewart Ingram, executive director of Sagewood.

“If a resident passes away, once we re-sell their home and re-occupy it with the next resident, the [deceased] resident’s estate gets an 80% refund,” Ingram said.

But if there’s a downturn in the economy and a unit is having trouble selling, the deceased policyholder would get that 80% refund within 24 months, whether it’s been re-sold or not, Ingram said.

“It’s a protection for the customer,” he said.

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A rendering of Phase II of Sagewood in northeast Phoenix.