AMC Delancey Forms Senior Living JV

HERSHEY, PA-Philadelphia-based AMC Delancey Group has formed a partnership with Traditions Development Corp. for construction and management of a 120-unit senior living facility. Called Traditions of Hershey, it will be located on a 7.7-acre parcel in S. Londonderry Township.

This is AMC Delancey's first foray into the senior living multifamily market. Kenneth P. Balin, AMC Delancey's president and CEO, tells GlobeSt.com, "it is our practice to become a majority investor in providing equity and resources to local specialty partners across all property types and geographies. In this instance, we're focusing on a model that addresses the need for independent senior living facilities." The rental units are for reasonably active seniors and include services in the rent rate. "There will be a medical office, but when more care is needed, the renter will move to a different kind of facility.""Pennsylvania has the second largest population of people over age 55," Balin continues. "As more baby boomers enter their 60s, the need for this kind of property is dramatic throughout the state." The Hershey facility is the first development of a model that the JV will expand. "We've identified a second location in Berks County."

Fort Washington-based Traditions is a partnership between Preferred Development Services and Heritage Senior Living, which owns and operates numerous independent and assisted senior living facilities in Central Pennsylvania. David Lovitz, president of Heritage, tells GlobeSt.com, "the cost of the land for this project was close to $1.2 million." He estimates the construction cost at $10 million. The architect is the Moorestown, NJ-based J. Randolph Parry. The project will break ground this fall with delivery by year-end 2007.

Studio units will be 420 sf, one-bedroom layouts are 610 sf, and two-bedroom units are 850 sf, according to Lovitz. "The rental rates will range between $1,700 and $3,000 a month. Included in the rent rate are meals, weekly housekeeping, laundry service, utilities, transportation and an activity program."