Inception Property Group is betting that demand will remain high for health care and senior living facilities.
The downtown-based developer has announced plans to build a roughly 151,000-square-foot outpatient medical office and senior living project at 1334-1356 S. Flower St.
Inception expects to break ground on the site in 2021 and be ready for patients and residents in 2023.
Peter Becronis, a founding partner of Inception, called it “the first speculative health care and senior living development in South Park.”
The medical office building, he said, would likely be leased by a single tenant.
The senior living component will offer market-rate independent living, assisted living and memory care units.
“Downtown Los Angeles is a very underserved neighborhood for health care,” Becronis said.
He expects more developers to combine senior living and health care in the future.
“You will see a lot more health care embedded into senior living communities down the road,” Becronis said. “It (the health care portion) will service the residents of the senior living community and South Park residents and people who work here.”
Becronis said Inception will select a senior living operator for the site in the next few months.
“We’ve for a long time been looking for the right piece of land to do senior living in downtown Los Angeles,” Becronis added.
It will be the company’s first senior living facility, and Becronis said Inception has plans for more.
“It’s the silver tsunami,” he said. “America is aging more and more. Due to changes in demographics, a lot of people are electing to live in senior living communities,”
Inception acquired the downtown site, which was initially proposed as a multifamily building, in October.
A recent survey from CBRE Group Inc. found that over the last five years senior housing gave investors a 14% return compared with a 9.2% return on multifamily investments.
The facility won’t be the first speculative downtown medical office development for Inception Property Group. In 2018, the company opened the 1.5-acre Downtown West Medical health care campus. The center was 100% leased by HealthCare Partners before it was finished.
