Wallstreet not affecting Mainstreet Property Group
Group Breaks Ground on Another Senior Care Campus in Lafayette;
Enjoys continued growth despite economy.
June 1, 2009
Commercial construction and development are not a problem at Mainstreet Property Group, despite the turbulent economic conditions affecting other real estate development companies. Trilogy Health Systems is one of the latest recipients of such development services at an estimated $16.6 million in value.
Mainstreet Property Group is a real estate investment company focusing on the acquisition and development of properties in the senior housing and care industry, including continuing care retirement communities (CCRCs), independent living, assisted living, skilled nursing and senior apartment buildings.
Mainstreet Property Group and Trilogy Health Services have signed a strategic agreement to develop senior care campuses in key markets throughout Indiana, Michigan and Ohio. Under this agreement, Mainstreet will underwrite and develop six to eight properties per year for Trilogy through the year 2012. Mainstreet has already funded and developed several like properties in Indiana.
“A tougher economic climate means commercial loans are not as readily available as they were just a few years ago,” said V. Edward Grogg, president of Mainstreet Property Group. “Tougher times drive tougher loan scrutiny- that is where Mainstreet excels. Repeatedly we hear from our lenders that they appreciate the opportunity to do business with us, because of our careful and efficient development process.”
“We go the extra mile for our clients from the strategic to the tactical; from the way we prepare for a project, to the way we work with our clients to construct and develop properties. It is all about efficiency, accountability and responsibility,” he added.
According to a January 14, 2009 Bloomberg report, construction spending on commercial projects in the U.S. will fall this year and next as the recession prompts businesses to delay or cancel plans. Economists have predicted that non-residential construction likely will drop 11 percent in 2009 and 5 percent in 2010.
“As profits for businesses have fallen and the ability to get credit to finance projects has become far more difficult, construction plans have been put on hold or canceled outright,” said Kermit Baker, chief economist for the American Institute of Architects in a statement. “This is not expected to turn around anytime soon and it’s likely to get worse before it gets better.”
Despite the decline in commercial lending, Mainstreet will develop an additional five campuses in 2009 for its clients. The first has broken ground in Lafayette, Indiana. The Lafayette Campus will house 108 units in a combination skilled nursing / assisted living facility, and 30 units in a separate memory care / Alzheimer’s facility. During phase two of the development project, there are plans to add an additional 40 to 60 independent living units to the campus. Mainstreet is responsible for managing and underwriting the development process, owns the real estate and serves as landlord.
In Lafayette, the project site is located directly across the street from the new St. Elizabeth Hospital, and less than one mile from Clarian Hospital. The 17-acre campus will share a stoplight with St. Elizabeth. Dan Peter of Centier Bank in Lafayette provided the construction loan financing, and Meyer Najem of Fishers is the general contractor.
“We are excited to continue Mainstreet’s legacy of excellence by providing Trilogy with the funding they need for growth,” said Zeke Turner, chairman and CEO of Mainstreet Property Group. “We are proof-positive that integrity, experience and financial savvy make all the difference to a company’s success”.
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About Mainstreet Property Group
Mainstreet Property Group is a real estate investment company focusing on the acquisition and development of properties in the seniors housing and care industry, including continuing care retirement communities (CCRCs), independent living, assisted living, skilled nursing, and senior apartment buildings.
Mainstreet has investments in 17 properties, composed of 2 continuum of care retirement communities (CCRC), 5 skilled nursing facilities, 4 assisted living facilities, 1 senior garden home development, 3 apartment complexes and 2 commercial office properties. Headquartered in Cicero, Indiana, Mainstreet owns properties totaling over $75 million in value with upwards of $100 million in its current development pipeline. Mainstreet’s operating company, Mainstreet Asset Management, Inc., operates or manages six of these properties and has 145 employees.
About Trilogy Health Services
Trilogy Health Services communities offer a full range of personalized senior living services, from independent and assisted living, to skilled nursing and rehabilitative services. Trilogy’s senior living services are delivered by staff specially trained to honor, and enhance the lives of residents through compassion and commitment to exceeding customer expectations. Trilogy currently operates 56 facilities in Kentucky, Indiana, Ohio, Michigan and Illinois.
Headquartered in Louisville, Kentucky, Trilogy employs more than 6,250 and is recognized as a Best Place to Work in Kentucky and Indiana. To learn more about Trilogy Health Services visit www.trilogyhs.com.
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