As neat as it looks, a scale model just can’t do justice to a new luxury retirement community now under way in north suburban Glenview. Sure enough, all the rich details, albeit in miniature, are there. Tidy villas line winding streets.
The palm-size condo building has just-so landscaping. Tiny turrets and balconies abound. At the replica’s center sits a tasteful, yet understated community building. Inside it, they say, there’s a library, fitness facility, billiards room and heated pool.
What the otherwise accurate model can’t show, however, is the peace of mind that comes with each home. Not only is this a maintenance-free, service-rich community, but it also cares for its residents for life.
“They have promised to take care of me when I am old,” said Dolores Conway, 66. She and her husband James recently decided to reserve a villa at the Glen, a luxury seniors-only community being built by upscale hotelier Hyatt Corp. at the south end of the old Glenview Naval Air Station.
“We like the whole concept of having access to care. We will probably need it at some point.”
Luxury retirement communities differ from other types of high-end properties. Exclusive seniors-only developments offer much more than great houses, beautiful surroundings and the latest amenities. The true top-end properties also have a host of services, such as housekeeping and food service. And the best of the best places pledge to care for you for life, whether you stay relatively independent or need round-the-clock nursing care.
“Part of the package of services we provide is care,” said Penny Pritzker, chairman of Chicago-based Classic Residence by Hyatt, developer of the Glen and other upscale seniors-only properties.
“Whether you are recovering from hip surgery or eventually need some assistance with daily living, our job is to provide those services.”
In general, housing options for seniors run the gamut. At the low end, the government subsidizes rental apartments for seniors who don’t have much money. Poor seniors who are sick can get help from Medicaid to pay for nursing home care. Market rate properties, apartments or condominiums, are appropriate for seniors who have saved some money.
For seniors with assets who need daily help, a variety of assisted living and nursing home facilities are available. These properties, usually rental, charge monthly fees which range anywhere from several thousand dollars up to $7,000.
High net-worth individuals who want the security of knowing where they will live until they die usually select what’s called a life-care community, such as the Glen.
A life-care community, or continuing care retirement community (CCRC), offers a continuum of care. The CCRC has apartments or villas for independent seniors, plus an assisted living and nursing facility. The different housing units are in one location, usually on some sort of campus.
A senior typically begins his or her stay in an independent unit and then graduates to assisted living or full nursing care when the need arises. Though the person may switch housing units, he or she doesn’t leave the campus.
Most seniors, even wealthy ones, prefer to stay in their own homes. But today about 625,000 older adults live in CCRCs, according to a survey from Annapolis, Md.-based National Investment Center for Senior Housing. Still, only about 4 percent of all retirement communities are CCRCs. Half of seniors-only communities are assisted living facilities.
Hyatt has 14 luxury properties for older people. Three others, including the Glen, are under construction. About half are rental or pay-as-you-go communities. The remainder are life-care communities.
“A portion of the senior population is looking for an environment that provides stimulation, a wonderful place to live, plus the safety net of a care center. Those are the kinds of people we are getting,” said Pritzker.
Rose Marie “Rhie” Johnson, 78, reserved a two-bedroom apartment at the Glen where she and her husband, Harry, 83, will live.
“It’s time for us to make new friends,” said Johnson, who currently owns a house in Winnetka. “You get old and your friends die or have terrible things happen to them.”
Johnson hopes her new friends will be good ones. She thinks the community will attract a lot of high-powered people who will be interested in discussion groups and activities.
“We’ll have fun together, but we’ll hang together during the tough times too,” she said. Johnson also wants a beautiful home in a beautiful place. “This is what I wanted,” she said.
The Glen, a $150 million project, will have 45 villas and 251 apartments. A care center will include assisted living apartments, plus an area for Alzheimer’s patients and those who need nursing care.
The community has a dining room, but each unit has its own kitchen, a washer and dryer and emergency response system.
The community provides housekeeping services, a 24-hour concierge, and building and grounds maintenance.
The Glen is also part of a wider community–the redevelopment of Glenview’s old Naval Air Station. Seniors will be near a new shopping area, movie complex, single-family homes and a golf course.
“I didn’t want to be isolated,” said Johnson. “There will be life all around.”
Luxury comes at a price, however. CCRCs or life-care communities typically charge an entrance fee, along with a monthly fee. These fees are based on the size of the unit and number of occupants.
Entrance fees at the Glen range from $250,000 up to about $808,000. On top of that, residents pay a monthly fee from $2,660 to $4,800.
Nationwide, average entry fees for a two-bedroom unit at a CCRC are about $107,800, according to the American Association of Homes & Services for the Aging, Washington, D.C.
In the past, life-care communities kept the entire entry fee, but that’s changing. Consumers have been demanding, and getting, more payment options. Entry fees nowadays might be refundable based on a sliding scale, or the refundable amount may decline the longer a person lives in the community.
For example, the Glen’s entry fee is 90 percent refundable. That means if the senior decides to leave the community, or if he or she dies, the person or their estate gets back 90 percent of the entry fee. No interest is paid on the refunded money, though.
The big entry fee might frighten some potential residents, but developers argue that a partially refundable fee is more akin to shifting assets rather than taking them.
“This program keeps a person’s nest egg intact,” said Barry Johnson, director of sales, Classic Residence by Hyatt at the Glen, Glenview.
He explains that most residents will use the proceeds from the sale of a debt-free house to cover the entry fee. He figures the monthly fee equals about what a person might spend to maintain a house.
Applicants at the Glen need assets totaling twice the amount of the entrance fee, including the value of their home. For example, a couple with a net worth of $1 million could qualify for a unit with a $575,000 entrance fee. Monthly income must be at least twice the total of the monthly fee.
“When you first look at the price, it looks terribly expensive,” said Johnson, who put down a deposit. “But you have to realize that you get 90 percent back.”
Besides, Johnson figures if she ever did need full-time nursing care it might cost $5,000 a month somewhere else.
She said: “You never know how long you might be in one of those nursing homes. This place is a really good deal. It’s going to be beautiful.”
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Read more about the area’s Upper Bracket housing market in a special magazine supplement coming Wednesday in the Tribune.
