Price reductions increase move-ins
By NANCY MUELLER
For Brentwood Home Page
Similar to the price cuts that have been happening in real estate, The Heritage has been reducing entry fees this year in response to the economy.
At one point last spring people moving into villas at the upscale retirement and assisted living community were getting 25 percent discounts.
The fee reductions boosted sales, and occupancy within the villas increased by five percent, marketing director Patrick Carle said.
This past summer, the community followed that up with a 20 percent price reduction for a while.
By September, The Heritage instituted another round of incentives that are still in effect: 15 percent off the entrance
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| Walking trails give seniors a great place to enjoy the beautiful Tennessee outdoors. |
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| Manicured grounds are maintenance free for residents. |
fees for the villas, but incoming residents can get more discounts by closing quickly.
“The message that we’ve sent is that there’s never going to be a better deal to move to The Heritage and purchase a Life Care agreement,” Carle said.
He said the discounts are an outgrowth of how the larger economy has been affecting potential residents of The Heritage.
“Not only have their real estate values been affected but also their portfolios,” he said.
The apartments, duplex villas, garden villas and single-family villas at the community are not purchased as real estate.
Residency at the community, which has its own health-care and assisted living facility, is established with entry fees that provide 80 percent “return of capital” options for a resident or a resident’s estate.
Residents of The Heritage pay monthly fees for various services that can include home health care, and they receive discounted fees compared to non-residents if they need the services of the health care center.
An illustration of the kinds of savings being offered currently can be seen from the discounts possible on the entrance fee of $575,450 for one of The Heritage’s duplex villas, a two-bedroom, 2.5-bathroom attached home with garage.
With the 15 percent discount now in effect, that fee is knocked down to $489,100. If the buyer can close within 30 days, another 10 percent can come off of that figure, cutting the fee down to $440,190.
If the buyer can’t close within 30 but can close in 60 days, he can get an 8 percent discount instead of the 10. Those who can close within 90 days can get a 6 percent discount and within 120 days still brings a discount, of 4 percent.
The community is also offering people a 50 percent return of capital option for a limited time that cuts the price even more. In the case of the same duplex villa in the example, the discounted entrance fee shrinks to $406,000 with the same discounts for rapid closings available.
If a person exercised all of the discount options available and closed on that duplex villa within 30 days, they could get it for $365,400.
The community currently has nine apartments available. All are two- bedroom and two-bath or two-bedroom, two baths and a den in addition to a living room.
There are two dozen villas available and all of them are two-bedroom, 2.5-baths with a den or three-bedroom, three-bathroom with den floor plan in single family villas, which are the largest homes on the property.
In addition to the health care center, The Heritage has a central clubhouse for its residents that includes a dining room, a bar, a salon, a fitness room, a convenience market and a library.
The community has approximately 250 residents now.
The master plan calls for the eventual addition of a Memory Care center for Alzheimer patients, another apartment building with 80 units and a Healthy Lifestyle Center with an indoor pool and more extensive exercise facilities.
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