After developing the nation’s first senior living cooperative community in 1977, a Minnesota-based senior living operator is diving back into that side of the business with a new option for active older adults.
Under the brand Estoria Cooperatives — Portuguese for story or history — Minnesota-based Ebenezer is developing member-owned cooperatives for active adults aged 62 or more years.
“This simple, elegant term really reflects Ebenezer’s storied past as a senior living provider, while honoring each member-owner as they share their own story,” Ebenezer Vice President of Business Development Susan Farr, who will head the new Cooperative Development division, told McKnight’s Senior Living. “The future member-owners of the Lakeville cooperative community will have an opportunity to add their own stories to this rich narrative.”
Farr said the up-and-coming younger active adult market — with someone turning 62 every minute — convinced the company it was time to delve back into the development side of the business. Members of this age group, she said, helped their parents move into senior living communities and decided they wanted something completely different.
“They have a home that’s too big; they are looking to simplify life, travel, shut the door and go — and mostly be part of a community,” Ebenezer Cooperative Development Director of Marketing and Sales Shona Schmall told McKnight’s Senior Living. “That’s the co-op model.”
Ebenezer will launch its first Estoria Cooperative of 89 homes, Estoria Lakeville in Lakeville, MN. The cooperative will be located in a suburban neighborhood setting with access to parks, shopping, dining, the arts and a historic downtown.
Schmall said that one of the unique features of the cooperative, which was born out of the COVID-19 pandemic, will be the indoor and outdoor spaces. Outdoor spaces will include a game area, play structures for grandchildren, fireside lounges, garden plots and dog parks, among other amenities. Interior spaces will include an art studio, a “fix-it” shop, bike storage, a pub room, a yoga and fitness classroom, and an area for virtual games.
The operator opened its first senior living cooperative community in the nation — 7500 York in Edina, MN — in 1977. Today, Ebenezer manages more than 60 cooperatives throughout the upper Midwest as well as owns or manages 45 independent living, assisted living and memory care communities.
As member-owners, Farr said, co-op residents are part of a membership preferred program. If they need a higher level of care or service at some point, Ebenezer can help them navigate to one of Ebenezer’s other senior living options.
Members cooperatives own a share or dividend interest in the cooperative corporation, which in turn owns the building and land. Decisions are made democratically, by an elected board of directors consisting of community members. Ebenezer staff members in the Homeowners Association Property Management division will provide oversight.
“Member-owners enjoy all the traditional benefits of homeownership, including growing equity and taking tax deductions, without drawbacks like home maintenance, yardwork or surprise expenses,” Schmall said. “Instead, members choose to simplify and downsize to a one-level floor plan, freeing up time to pursue other interests, engage in social groups, take advantage of amenities like a yoga / fitness center or art studio, and even travel worry-free knowing their home is secure.”
Schmall said that active older adults like the concept of having equity at a “very reasonable,” upfront cost. The financial structure allows member-owners to lock in the lowest interest rates on the market for 40 years.
“They purchase a share in the co-op — instead of owning real estate, they own personal property through shared ownership,” Schmall said. “It’s a really unique model.”
Ebenezer is in the final stages of schematic designs of the building and finalizing pricing, with plans to launch informational meetings in the next 30 to 45 days. An information center and showroom also are under construction to open around the same time, allowing owners to pick out their own cabinets and flooring, along with other features.
Ebenezer eventually wants to develop two to three senior housing cooperatives annually and is looking at several plots of land in Minnesota, Farr said.
Estoria Cooperatives must pre-sell 60% of its units before it can begin construction, which is expected to take 14 to 16 months. Schmall said that the goal is to break ground either by the end of the year or in spring 2023.
The company also is working on creating three-dimensional animated tours of the building and individual homes based on the architectural design. Prospective buyers will be able to take virtual tours this summer.
