100% PRE-OPENING OCCUPANCY RATE

Rarely does a project come along that provides the opportunity to draw on every skill, every talent and every professional experience that spans an entire career. From working with the developer on floor plans to opening day ceremonies, the launch of Montabaur Heights was the most comprehensive project I have managed. 

Client + scope + results = my favorite project. 

Overview

The Brothers of Mercy property is a non-profit senior living campus in Clarence, NY consisting of rent-controlled apartments, a supported living facility and a skilled nursing home. To help ensure the future financial stability of the campus, the decision was made to build an all-inclusive, luxury senior living community. 

The property would be the first all-inclusive independent senior living community in Western New York and was intended to set the standard for luxury and convenience. The developer set an aggressive goal of a 33% occupancy rate on opening day. This meant pre-leasing 36 of the 110 one- and two- bedroom apartments in a building that did not exist within a twelve-month timeframe from groundbreaking to the scheduled opening date. 

Extensive research was conducted during the first few months of the project. I was responsible for all aspects of the competitive review, interviews with the target audience and conducting focus groups. 

Competitive Analysis

I obtained collateral materials, reviewed websites and visited the campuses of the top six competitors as determined by similarities in costs, amenities, location and target audience. The information was summarized in a comprehensive report that was presented to all stakeholders including the Board of Directors, property developers and financial backers. The report included cost of rent, floor plans, apartment features and facility services/amenities of the competition. It also included a series of recommendations to help market the property. 

Target Audience Surveys

A questionnaire was developed that asked prospective senior residents what features would be most important to them when considering a luxury independent living community. We asked them to score on-site amenities such as a movie theater, grocery store, spa and pool. Questions about paid upgrades  (e. g. fireplaces, covered parking, wireless safety monitoring system) and services they would expect to be included in rent  (e. g. restaurant-style dining, weekly linen service) provided information that would be used to design apartments and guide the layout of the overall site. 

Focus Groups

Small groups of seniors who were considering moving from their homes into a no-maintenance independent living facility were invited to share their impressions of the property at certain stages of development. They were shown the proposed property map as well as sample apartment floor plans and were asked for their feedback. The information gathered during the focus groups helped shape the final site layout and floor plans created by the architects and property developer. 

The above research identified items that were deemed “must haves” and “not needed” by prospective tenants. This valuable information allowed the developer to put money into features that would increase the appeal to the target audience while eliminating or pulling back on other services/amenities. Some examples of these findings include:

• It was not worth investing money to install gas fireplaces in every unit as this feature was rated very low on the surveys and in the focus groups. The developer made fireplaces an optional upgrade saving thousands of dollars on the initial build. 
• Having a bathroom for guests or a second tenant was extremely important so we revised the floor plan for some two bedroom units to have a master bath room and a second full bathroom. 
• The majority of prospective residents were willing to pay for enclosed parking. Learning this before the site plan was finalized allowed the developer to adjust the layout of the parking area and build additional enclosed parking which generated more monthly revenue. 

Building a luxury, independent senior living community was just an idea when I began working on the project. Nothing existed yet: no name, no cost/rent structure, no approved apartment floors plans, no site layout, no marketing materials or marketing plan. The team was starting completely from scratch eighteen months prior to the scheduled opening date. 

Challenge: Property Name and Brand Identity 

Before we could start developing marketing materials, we had to name the property and establish a brand identity (logo, tag line, fonts, color pallet, etc.) that would create an accurate representation of the community being built. Stakeholders were brought together to describe how they wanted the property to be viewed.  Phrases such as upscale, all-inclusive, reputation [of the Brothers of Mercy]/tradition/history, convenient and exclusive made the top of the list. 

Solution:

Based on stakeholders' input, we proposed naming the property Montabaur Heights, the town in Germany where the first major Brothers of Mercy residence was located. The town’s iconic building that once housed the order became the inspiration for the property’s logo. “Heights” was recommended to convey the ideas of luxury and exclusivity. The Board unanimously approved the name as well as the logo and tag line: Redefining Senior Living. 

New marketing materials portrayed Montabaur Heights as a luxury hotel setting offering a complete suite of services and amenities, making it unnecessary for guests to leave the property. Brochures, leasing collateral, print ads and website highlighted exclusive features (movie theater, pub, café, retail space, spa, fitness room, chapel, restaurant, outdoor spaces, banking, dry cleaning, linen service), the pastoral setting and the Brothers of Mercy’s reputation of excellence.  The exclusive services, beautiful location and the reputation of the Brothers of Mercy were used to differentiate Montabaur Heights from their competition. 

Challenge: No Physical Building or Model Apartment  

It is very challenging to convince people, especially seniors, to sign an annual lease for $2,500 -$3,500/month when they cannot see where they are going to live. Adding to the challenge is the fact that signed tenants were being asked to make a deposit and wait up to a year before they could move in. To overcome these obstacles, we created several marketing tools designed to help prospects visualize their future home. 

Solution:

Using architect renderings, we developed 3-dimensional floor plans and an apartment planner that allowed prospective tenants the opportunity to place “to scale” furniture in the apartment they were considering. This was extremely helpful in answering questions such as “How much will I need to downsize?” and “Will my China cabinet fit on this wall?” which in turn made making the decision to sign on the dotted line easier. 

To give a realistic view of the building itself, we produced a virtual tour that could be viewed on Montabaur Heights website or linked to online listings. The virtual tour allowed future residents to walk through the facility with 360º views of the entrance area library, retail space with grocery store, movie theater, café, pub, restaurant-style dining, chapel, outdoor dining area and gazebo. Each space was shown with details that instantly conveyed luxury and exclusivity. For example, the movie theater had deep red walls, thick velvet curtain partially opened and reclining leather seats. The virtual tour generated excitement and caused viewers to feel confident in their decision to reserve an apartment on the spot. 

Challenge: Limited Budget, Limited Resources

Montabaur Heights was being built by a non-profit organization, and once built, would be a non-profit entity. As with most non-profits, money and staff were in short supply. I was given a total marketing budget of $125,000 to launch Montabaur Heights, which meant developing a plan that allocated funds as efficiently as possible.

Solution:

I became the marketing “department" for Montabaur Heights on an hourly basis. Working with a freelance graphics designer and a website programmer, I handled all marketing functions including: planning, budget allocation, copywriting, print/production management, obtaining bids/approving costs from third party vendors, media placement, art direction, public relations/press releases, research, event coordination (focus groups, ground breaking ceremony), developing website architecture/content, and updating social media. In other words, there were several moving parts which were my responsibility to plan and execute. 

Using a combination of free and paid advertising, working relationships with media outlets and piggy-backing Montabaur Heights marketing with Brothers of Mercy events, we were able to execute a very robust, successful marketing plan.  

The developer had set a pre-opening occupancy rate goal of 33% (36 out of 110) to be achieved during the 12 months between groundbreaking and opening day. We exceeded that goal:  

• Six months prior to opening day, we had achieved a pre-opening occupancy rate of 55% (61 out of 110) 
• 90 days before opening, we had 100% pre-opening occupancy rate - all 110 units had been leased. 
• On opening day, there was a waiting list of 42.

Because we had achieved a 100% pre-opening occupancy 3 months before opening day, Montabaur Heights was able to pull back on some planned marketing activity - saving money and leaving a portion of the original budget unused.