My active adult model has line items conventional multifamily never had

On your expense question. I did a repositioning of a tired 90s garden asset into age-targeted and the cost was all in the places you don't photograph. Lighting levels in corridors, threshold heights, grab blocking in bathrooms, exterior walkway slopes. Scope crept from $2.1M to $2.9M and almost none of the overage was the clubhouse everyone argues about. If your 2008 building was purpose built for this it's already done, so check that before you assume the expense line is inflated. Some of that $1,500 is the reason the building works.

Which market? I've got a list going and the thing I keep finding is that the premium is very location dependent. Suburbs with a lot of 60-something homeowners sitting on paid-off houses hold a premium fine. Places where the 55-plus buyer just buys a small house instead don't.

One thing worth checking on your question: whether the comparable conventional building has any 55-plus residents in it. If it does and they're paying $1,450, your premium is buying the age restriction itself, which competitors can't copy without giving up their whole applicant pool. That restriction is a real barrier, a hard one.

Does the leasing team need any specific certification for this? I'm working through licensing right now and I can't tell whether age-restricted leasing carries extra requirements or whether it's just fair housing training with more care. My understanding is it varies by state and by what services the community offers on top of the housing, which is exactly the kind of answer that makes me want to ask somebody.

Cut the amenity payroll and watch what happens. I inherited an asset where the previous owner had removed the activities coordinator to save $58K, and occupancy went from 94 to 87 over about 14 months. Nobody wrote "no more bingo" on their move-out form. They wrote "moving closer to family." You will not be able to see the damage in time to reverse it.

On your actual decision. Exiting at conventional plus 25 doesn't reflect where this product sits with institutional buyers right now, and the surveys have senior housing near the top of the investment preference tables. But that's sentiment and it can move. What I'd do instead of arguing about the exit cap is run the deal at your conservative exit and see whether it clears your hurdle on cash flow alone with no cap compression. If it does, the exit argument stops mattering and you can hold your number.

quarry's point is the one I'd underwrite around. There are third party programming vendors who'll run the activity calendar on a contract instead of a headcount, and it's often cheaper than a full-time coordinator for a 120 unit property. Worth a line in your model as an alternative to the payroll number you inherited.