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Award-Winning Designer
Uses Elegance to Help Market Senior Communities

By Janet Traylor

Imagine yourself settling in for the latest video in an exclusive 21-seat theater. Stopping by an elegant on-site library to see if the new bestseller has arrived. Strolling down an art-filled hallway to meet a friend for ice cream.

Residents of senior-care communities designed by LuAnn Holec, ASID, enjoy these and similar opportunities. Holec, an interior designer at MGA Interiors in Phoenix, Ariz., has spent much of her career designing upscale model homes for the housing industry. She is now applying her talents to the senior-care market.

Her clients -- facility owners and managers -- believe good dressing can enhance their lease-up rates. In a world of Starbucks, Restoration Hardware and W Hotels, owners and managers of assisted living communities are learning that their customers appreciate functionality imbued with aesthetics. And like consumers in other categories, they'll often pay a premium for well-designed products.

For facility owners and manager, closing and leasing rates are the ultimate measure of a project's success. "The industry average is two years to get to 100 percent occupancy, whereas we had a waiting list after only 14 months," says Elaine Devine, director of marketing at Sierra Pointe, a luxury rental retirement community in Phoenix. Opened in March 2000, Sierra Pointe has 216 units, of which 178 are independent living and 38 are assisted living.

"We're selling primarily to the adult children of our residents," says Devine. "You've got to appeal to their sense of style and their expectations. And the further you can get from the concept of a nursing home, the higher your closing rate is going to be."

Roger Cheney, CEO of Southwest Retirement Corporation, Sierra Pointe's corporate owner, who built his first retirement project in 1977, believes there's currently a renewed appreciation for good design. "And by good dressing, I don't mean frou-frou and gingerbread and layers upon layers of gaudiness -- but clean lines, great materials, fit and finish. Those things say quality," he says.

"Industry people who have traveled through the country and have been in the most upscale facilities say we're in at least the top 10 nationally, and probably even the top five," adds Cheney. He agrees with Devine's assessment of design's power to attract potential customers, and says lease-up at Sierra Pointe has met his company's high expectations.

Holec says her experience with the high-end residential arena has honed her insight on how to create an entirely new model for the senior-care market. "In the past, designers of these types of communities were from healthcare backgrounds," she says. "Our approach is residential, yet still functional for an aging population. Just because someone is getting older doesn't mean they don't appreciate a warm, sophisticated environment."

"I strive to meet the functional needs and solve practical challenges, yet maintain a fresh, creative look," says Holec. "I avoid anything that looks institutional."

Another Holec project, The Stratford, a new assisted living/memory care facility in Phoenix, opened to rave reviews in 2001. The Stratford comprises 80 assisted-living apartments and 48 memory-care apartments for Alzheimer's patients. The facility is licensed as a directed-care facility, so residents can stay in comfortable, familiar surroundings, yet have access to graduated care facilities.

Stratford's fresh décor, original artwork, elegant upholstered couches and chairs set the tone. A '50s inspired soda fountain encourages an active lifestyle. The living room, where residents can entertain family or socialize with friends, uses warm colors and classic furniture to create a homey atmosphere.

Eric Johnston, president of Retirement Community Specialists (RCS), the Stratford's owner, says the community is finding an enthusiastic following among north-central Phoenicians who are used to quiet luxury. "LuAnn has designed a lot of model homes for home-builders; she brings that same custom-home touch, yet selects furniture and fabrics that lend themselves to the senior market," says Johnston.

Johnston says most of The Stratford's residents come from a one- to three-mile radius of the facility, though they've attracted at least a half-dozen residents from competitors. He acknowledges it's more expensive to design and build quality, but believes the end product is worth it. "We're a better alternative than the old-fashioned nursing home, and we're worth every penny," he says.

The Stratford's rapid lease-up rate is a source of pride to Johnston. "The absorption process of filling the community is very critical because you're burning your construction-financing interest dollars. The longer it takes, the more negative carry you're going to have, and normally, that carry will be 10 percent equity -- out of the owner's pocket," he says.

Johnston says he doesn't have quantitative figures, but intuitively feels that excellent design can have an effect of lease-up rates. "If the absorption process can be speeded up due to curb appeal, that helps," he says.

Families searching for the right setting for their loved ones are both subtly and overtly influenced by design," he says. "That's the magic that lights up the eyes of children and grandchildren, who are sometimes third-party decision-makers."

Bob Stave, president of Stave Properties, is also a proponent of Holec's design. He worked with her on Citadel Assisted Living in Mesa, Ariz. Completed in 2000, Citadel offers 118 assisted-living units in 10,000 square feet.

At Citadel, Holec created several themed lounges, including a ladies' lounge, with flowers, card tables and a welcoming setting for women to gather for tea, cards and conversation. Sports fans gravitate to another area, defined by a pool table and sports memorabilia. And residents can also enjoy movies and popcorn in the on-site theater.

"We were trying to create a place people would be proud to call home," says Stave. "We've tried to make it how we'd want to have it if we were living here. At our grand opening, a resident's daughter came up to me and said 'Mom feels like she lives in a resort; she's proud to show people where she lives.'"

Industry peers have recognized Holec's work with awards. Citadel Assisted Living recently won a first-place award from the Arizona North Chapter of the American Society of Interior Designers (ASID) in the assisted-living category. The Stratford garnered a merit award. Sierra Pointe took first place in the ASID competition and received a silver award from the National Council of Senior Housing.

Janet Traylor is a marketing consultant and freelance writer based in Phoenix, Ariz.

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