Satellite campuses are growing in popularity as a growth strategy for senior living organizations, according to specialty investment bank Ziegler.
Approximately 12% of senior living provider organizations surveyed reported that they plan to grow through the development of such a campus in the next two years, the company said in the latest issue of Senior Living Finance Z News. That figure increased to 14% for single-site providers but dipped to 10% among multisite providers.
According to Ziegler, satellite campuses usually are near a larger, main-campus — often a continuing care retirement / life plan community. Additionally, the satellite campuses generally have a smaller footprint. Branding is tied to and builds off the parent/main campus.
“In some cases, a satellite might be in a downtown, more urban location, while the main campus is situated in a suburban setting,” according to Ziegler Director of Senior Research and Development Lisa McCracken.
Generally speaking, those campuses do not include a skilled nursing component, and they lean toward independent living units.
“Building a secondary campus allows a provider to test the waters “by growing to a second location without the risk of building out a full-continuum campus that might be geographically much further away from the existing community,” McCracken said. “The risk for satellite campus developments is less than larger new developments.”
She noted that satellite campuses might prove to be a draw for baby boomers — those born between 1946 and 1964 — who might be looking for housing with hospitality and lifestyle options more than care.
“A satellite campus offering provides for an additional housing product option for providers to offer. Choice and alternatives can be a big selling point for the prospective customer,” McCracken wrote.
