In the next installment of Chatting with the Masters, I chat with seniors housing renovation and reconstruction expert Lucas McCurdy. Lucas is very passionate about the industry, and I have known him for several years. With the recent storms, I felt it would be a great idea to reach out to him so he share some of his experience in responding to storm damage,, along with steps that can be taken before a storm to protect your investment and ensure the resident's safety.. If you need help navigating the seniors housing growth and investment space, feel free to e-mail Scott McCorvie at scott@srgrowth.com.
Question: Lucas, thanks so much for taking the time to chat with me today. I’m sure you are very busy right now, but I also know there are a lot of seniors housing owners and operators that received damagefrom the storms and still assessing their needs. First, what is the initial thing a seniors housing owner / operator should do after a large storm when they notice visible wind and/or flood damage?
Answer: Thank you Scott. I am excited to get this information out to your network. The first step is to develop a relationship with a disaster GC when the sun is shining – makes sense right?! There are unique aspects to working in senior living communities, so it’s important to work with a GC that specializes in senior housing. Ideally your “on call” disaster contractor would have significant senior living experience and not just a few jobs mixed into their portfolio. In many cases a GC may have tons of commercial experience with a few senior living/healthcare jobs on their resume. Its up the owner/operator to decide what level of experience is important to them. This can really come into play if the owner/operators portfolio is heavy in either memory care or skilled nursing. Safety and infectious disease control should be a top priority on every job. SNF and MC communities add a different level of challenges in the event of a disaster, so experience in dealing with AHCA should be a top priority.
Question: Should an owner / operator start performing repair work immediately on their communities, or should they wait for an assessment from their insurance adjusters?
Answer: Getting first responders in to execute water mitigation such as extraction and dry out is crucial. Once water enters you building the clock starts ticking. It doesn’t take long for microbial issues to form so you want to mitigate any further damages. An experienced disaster GC will know how to document every detail of the initial response work in a standard format that is recognized by the insurance industry.
Question: Is there anything that you, or an owner / operator can do to help alleviate the burden and disruption to the residents?
Answer: The safety of the residence is the top priority. Building disasters can cause major disruption if not managed well. That’s why having a plan in place before a disaster is crucial. Coordination between the corporate office, onsite staff and GC will assure the rebuilding efforts have as little impact on the residents possible. Hurricane season is June to November but water pipe breaks, fires, and power outages happen year-round.
Question: What is your biggest concern when you make an initial assessment of the damage after a storm?
Answer: If its water damage (most of the time it is), then assessing what “Category” of water damage, is crucial. Using blowers, air movers and fans are typical in a category 1 water loss but not in a Cat 2 or 3. You can unknowingly cross contaminate you entire community if this is done wrong. If the water damage is suspected or known to be Cat 2 or 3, the owner should immediately bring in an industrial hygienist to do an assessment and work with the GC to write a protocol for remediation. We are experiencing this type of coordination right now in Houston after the flooding from Hurricane Harvey.
Question: Is there anything an owner / operator can do prior to a storm to help mitigate the damage?
Answer: Planning before a storm can be the difference between a confident strategy and a nightmare. Having the right relationships with everyone who influences the decisions will have an impact on the end result. We are seeing disaster resources stretched to the extreme given what has taken place in Houston and the entire state of Florida.
Question: Can you typically make any design improvements and/or renovation upgrades when performing the storm damage repair work?
Answer: This is a very common request but there are challenges. Depending on the level of damage and type of care you offer it becomes a timing issue. Renovations are planned well in advance, but disaster are not. Trying to implement a new design from scratch and cause a major delay in getting your community back up and running. That custom flooring you have been wanting may take 12 weeks to get. Cabinets and millwork may be 6-8 weeks out. You get the point. There are creative ways to help minimize the impact while we wait on material selection and delivery. Nothing a little more money cant fix.
Question: Why should an owner/operator select a specialized seniors housing repair General Contractor vs. a traditional General Contractor?
Answer: Porsche owners don’t get their oil changed at Jiffy-lube. So if you are going to protect your asset and your residents, get partnered with venders that get what you do and why you do it. Everyone that works in senor housing has an obligation to give their best effort to make the lives of our aging population thrive. They deserve dignity, quality care and a safe place to live. Owners/operators should have the proper insurance and relationships in place to make sure every effort is made to get the job done with excellence.
Lucas McCurdy, Senior Vice President, Coastal Reconstruction Group
I am a Husband, Father, and 3rd generation leadership in our family General Contracting business. My grandfather started our company 31 years ago with the owner/operator in mind. Be available to respond when the client needs us. That is the same philosophy my father and I have today as we serve our senior living clients with their property renovation and reconstruction needs. We start everyday with our clients expectations at the forefront. I am passionate about the responsibility our company has in playing a crucial role between the initial investment, and ROI, by transforming a value add or legacy property into a top preforming asset. As a self-proclaimed LinkedIn junkie, I look forward to connecting to anyone in senior housing.
Scott McCorvie, President, Senior Living Growth Advisors
Scott McCorvie has over a decade of experience within the seniors housing industry, and has devoted his entire career to this exciting segment. From 2004 to 2012, Scott worked for one of the largest dedicated seniors housing consulting and advisory firms, where he completed hundreds of seniors housing valuation, feasibility, regulatory, and market analysis assignments in markets across the United States. From 2012 to 2017, Scott worked for two public, non-traded healthcare real estate investment trusts, and was actively involved in the full spectrum of the institutional investment process. In 2017, Scott launched Senior Living Growth Advisors to assist owners, operators, developers, and investors achieve their desired growth success. Scott has a strong passion for the industry, and strives to combine innovative investment strategy with strong knowledge of seniors housing market and operating fundamentals.
