VSI offers the option of a financial proforma projection for a senior project as a tool for developers, project owners and management teams to use in preparation for program planning, construction, land acquisition, financing, architectural design team planning and other important decisions early in the development and project planning phase of their project. This tool is typically used following the completion of the site-specific market feasibility study for the senior development.
Our financial proforma is tailored to each known element of the project being considered. For example, projected fill rates (absorption) at various price points are calculated with full examination and consideration of various market factors identified in the market study, including age and income demographics, home values, existing competitive facilities and other important factors.
The process of developing the project proforma involves a full understanding of the project's land costs, an estimate of hard and soft costs of construction and development, Furniture, Fixtures and Equipment (FF&E) expenses, pre-opening expenses, the service structure and staffing, licensing requirements/costs, the cost of various financing alternatives and other key factors in order to fine tune financial projections for your project.
As an outcome of requesting the financial proforma option, the client can expect a five-year financial projection that clearly identifies the projected initial operating deficits, projected stabilized occupancy (timing and census), projected profitability of the project over the full term of the proforma and the estimated value of the project when it reaches optimal occupancy levels.
For further information related to including this option as a component of your market study process, please contact us.
