LCS Development Services_January

Senior Living Development Services Overview LCS DEVELOPMENT

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At LCS Development, our heritage is rooted in serving senior living communities across the country through expansions, renovations, and new development projects.

We have exclusively served the senior living industry for more than 52 years. We believe in the power of relationships and working towards a common goal.

Your development partner: • Needs to be particularly sensitive to the unique nuances of developing senior living communities, while at the same time contributing fresh ideas for consideration.

• Must work hand-in-hand with you and your senior leadership team to scope and position your project for success in light of current cost pressure and current and future market opportunities.

• Should have extensive experience in all aspects of developing senior living communities and those owned and operated by independent, strong organizations.

• Should be well respected and recognized by the financial community to help you secure the lowest cost capital needed.

• Should bring a wealth of experience developing in high-barrierto-entry markets with intricate complexities.

We firmly believe that LCS Development is uniquely qualified to serve as your development partner in that: • LCS has been developing senior housing since 1971.

• We use a customized approach and embrace the concept that no two senior living communities are the same.

• We bring proven, time-tested ideas and processes and value the experience you, your leadership team, and your board bring to the planning and development process.

• We understand that cost pressures will require us to be collaborative, strategic, and disciplined.

• We have experience creating value through efficient design management and transparent proposal processes that ensure competitive pricing.

• As a full-service firm, LCS Development is the only senior living development organization with all requisite professional expertise in-house, including specialists in market research, design oversight, construction oversight, project management, marketing and sales, regulatory compliance, operations management, and finance. These resources include: - Twenty-eight development professionals, including five licensed architects and team members solely focused on development financial planning and analysis.

- An in-house compliance department of twelve professionals, many of whom have law degrees.

- More than forty-five dedicated sales and marketing professionals.

- Six dedicated professionals in market research and analytics.

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PROJECT:

Porters Neck Village Wilmington, North Carolina

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Contents I.

Firm’s Background Our Company.........................................6 Our Capabilities......................................8 Our Philosophies..................................11

II.

III. Project Team & Process LCS Development Process..................21

IV. Featured Projects Westminster.........................................23 Porters Neck Village.............................24 Rolling Green Village............................26 Capital Manor.......................................27 Friendship Village Tempe.....................28 WhiteStone...........................................30 Eastcastle Place...................................31 Heron’s Key..........................................32

Scope of Services Depth and Breadth of Resources.........13 Market Viability, Market Study..............14 Strategic Planning, Master Planning....15 Feasibility Services...............................16 Development Services.........................17 What Makes Us Different.....................18

V.

The Power of Partnership Partner Testimonials.............................35

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Section I. Firm’s Background

Our Company LCS is a pioneer in the senior living industry with more than 50 years of experience. Though the company has expanded and evolved over the years, LCS remains deeply committed to serving seniors and is focused on doing what is right for residents, their families and our partners. LCS has steadily established itself as a leader in senior living, while at the same time has helped build the senior living industry from the ground up.

PROJECT:

Friendship Village Tempe Tempe, Arizona

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A Suite of Solutions LCS Community OperationsTM has the experience required to boost community financial performance, increase occupancy, and develop new lifestyle and health initiatives to meet consumer expectations and help communities thrive. We are the nation’s fourth-largest operator of senior living communities and have expertise in the management of both Life Plan and rental communities. From independent living to assisted living, skilled nursing to memory care, at LCS, Experience Is Everything.

LCS Development® is a full-service third-party developer of Life Plan and rental communities solely dedicated to designing and developing senior living communities since 1971. We have experience in helping owners and sponsors develop highly complex projects in markets throughout the United States. Utilizing decades of in-house expertise and single-source precision ranging from master planning and design to construction management, sales, finance and more.

LCS Group PurchasingTM is a national purchasing organization specializing in connecting communities in the field of senior living to over 250 well-respected suppliers in the field of senior living. LCS Group Purchasing provides dedicated and experienced customer service resulting in cost savings in operations, food service, medical supplies, therapy, pharmacy, and more for its clients.

LCS Real EstateTM is a full-service real estate private equity enterprise that works to create a collaborative platform unique in senior living. LCS Real Estate has the deep understanding and experience needed to handle investments, debt capitalization, and asset and performance management. With a proven track record, and more than $2.5 billion in assets under management, LCS Real Estate has a wealth of experience and connectivity to capital relationships that help connect investor partners with opportunities and source deal flow.

LCS Foundation is a 501(c)(3) organization created to develop future leaders of the senior housing and care profession, support Alzheimer’s care and research initiatives,and provide financial relief for personnel during crisis situations. Established by leaders from the LCS Family of Companies, the LCS Foundation is governed by a volunteer board of directors who are connected to the field of senior living and have a deep passion for serving seniors.

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Section I. Firm’s Background

Our Capabilities PROJECT:

Capital Manor Salem, Oregon

LCS Development brings a full continuum of development services to every project. Our team of in-house architects, designers, project managers, and financial experts, oversee every detail, coordinating efforts with your local team and vendors to ensure partnering with us is a high-reward solution.

Our development leaders have experience in managing development projects spanning the spectrum — from small renovation projects for existing communities to major new campus developments. The experience we have gained in developing and repositioning communities for more than 50 years greatly benefits organizations around the country.

Few, if any, development-consulting firms serving our industry can match the inhouse design and project management expertise of LCS Development. With five licensed architects on staff, experienced in overseeing the architect of record and construction of senior living communities, we have vast experience in managing both the schedule and cost of expansion and renovation programs. In addition, our proprietary operational budget model is unique in the industry. It draws upon our experience in providing services every day to more than 40,000 seniors in nearly all product types.

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Market Research • National leader in senior living market research • Market Viability Ratings • Market Assessments • In-Person Competitor Shops • Competitive Pricing Analysis • Focus Groups • Custom Studies

Design Management

• We employ an iterative approach to design programming and floor plan efficiency to align with the financial realities of each project.

• Assist in obtaining entitlements and provide underwriting expertise, enabling clients to secure interim financing and essential seed capital

• We collaborate fully with your operations team to ensure the correct balance of revenue-generating, amenity, and back of house space.

• Experience supporting clients in securing interim and longterm financing to bring their vision to fruition

• We value collaboration between the project sponsor, the operator, and the design and construction teams.

Day-to-day Project Expertise and Execution

Experience to Inform Strategy & Planning

• We create adjacencies that are efficient, marketable, and seniorfriendly, informed by LCS’s own operational experience.

• Innovative in finding the “Sweet Spot” for market positioning

• We deliver award- winning communities recognized for cutting edge design and innovation.

• Wholistic perspective – plan, program, and design to the vision and mission of each unique project with the lens of LCS resources

Finance Management

• Experience partnering with client organizations to create a comprehensive community vision • LCS Development’s approach is to balance market conditions and the needs of leadership and staff alongside

• LCS Development Finance leverages our experience with140+ managed communities in order to assess project feasibility and test scenarios • Reliable revenue, cost, and debt projections through extensive project experience, supported by Insight AdvantageTM • Alignment with broader investment banking community through frequent market activity • Growth Projection System (GPS) – proprietary database, budget, and forecasting system that provides actionable reports to owners

• Proven capacity to project manage from feasibility contract bidding through project execution • Experience development consulting creating value in scoping, positioning, negotiating and delivering your vision • National and local experts to understand the unique nuances of each market and apply best practices

Regional Sales and Marketing • Occupancy development budgeting tool used to scope complete project costs in early stages • National sales presence for life plan occupancy development • Supporting community sales teams with training, sales process, and agency management • We maintain regional capacity to support new and expanding communities without long term staffing

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Section I. Firm’s Background

Our Philosophies As an industry pioneer with more than a half-century of experience, making a difference in the lives of seniors has been our sole focus since day one. At LCS, we’ve designed a dedicated family of companies to help fulfill your community’s mission. This structure allows us to develop and share expertise across our company to deliver innovative solutions to seniors and their communities. We are guided by five principles to ensure that every company decision is made with integrity and for the good of the seniors we serve.

Our Guiding Principles: • We serve the customer, first and foremost.

• We deal honestly and fairly, with integrity and openness.

• We maintain a long-term perspective.

• We are diligent and persevering.

• We are interconnected and interdependent.

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Section II

Scope of Services

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Section II. Scope of Services

Depth and Breadth of Resources Having your planning process coordinated by an organization with the experience and depth of LCS Development brings great benefits. In a cost-effective manner, we bring market research, conceptual design, financial planning and operational benchmarking opportunities in one coordinated approach. Utilizing LCS Development, you have one firm, fully accountable to you and your board.

LCS Development Consulting Services include:

Market Viability & Study Strategic Planning Master Planning Design Management Financial Modeling & Feasibility Occupancy Development

PROJECT:

Croasdaile Village Durham, North Carolina

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Section II. Scope of Services

Market Viability

Market Study

LCS offers comprehensive market analytics to help assess the viability of sites prior to developing communities. Using advanced statistical modeling, our proprietary assessment incorporates factors such as age, household income, home value, and relevant competitive intelligence then layers in psychographic data to fully assess the site’s ability to support a new community both today and in the future.

A Market Assessment is a critical and logical next step in bringing your senior living project to life. With 120+ communities in our portfolio and a team of in-house research analysts, LCS is uniquely positioned to offer a robust Market Assessment allowing you to better understand your proposed project. Primary deliverables include:

• Partner with our team of experts to understand the benefits of each location under consideration.

• Receive a comprehensive market viability assessment to gain clarity on the project’s alignment with market suitability and viability.

• Weigh the outcomes of this market viability study with our team of development experts to chart a path forward.

• Custom Primary Market Area (PMA) Mapping

- Drive-Time Mapping

- Population Density Study

- Median Home Value Study

• PMA Market Conditions

- Depth

- Affluency Factors / Psychographics

- Market Viability

• Supply

- Senior Living Supply Map

- Independent Living

- Assisted Living

- Memory Care

- Active Adult Supply

- Development Pipeline

• Competitor Pricing • Demand Factors

- Penetration Rates

- Demand Analysis

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Sagewood Phoenix, AZ

Section II. Scope of Services

Strategic Planning

Master Planning

Deliverables Example:

Three phase process which includes Assessment, Collaboration, and Delivery of Master Plan

• Develop a clear vision and strategic plan for your community’s future with LCS Pathfinder:

Deliverables Example:

- We facilitate strategy sessions to align leadership on priorities and objectives

• Meet with stakeholders to understand the goals and objectives of the project

- May include an immersive presentation by LCS experts, coupled with listening and discussion sessions

• Prepare a preliminary site plan analysis including: - Preliminary site investigation and testing - Zoning assessment

- Often a precursor to Master Planning where clear objectives are yet to be identified

• Assess the current situation, market, regulatory constraints and physical plant

• Provide big- picture perspective of multiple short and long term potential opportunities for expansions, repositioning, or renovations, and related phasing plan • Establish preliminary operational and capital budget estimates to validate feasibility at each phase LCS Development Overview Services // 15

Section II. Scope of Services

Feasibility Services Deliverables Example: • Prepare a detailed site plan analysis • Provide a summary of the current regulatory requirements for Municipal and State entitlements • Prepare a detailed space plan program analysis • Develop a strategy for unit mix, entrance fee pricing and monthly fee pricing • Establish detailed timelines, work plans and key milestones (Go/ No Go Decision Points) • Prepare a project pre-finance budget outlining the timing and funds needed prior to securing short- and long-term financing

PROJECT:

Porters Neck Village Wilmington, North Carolina

• Prepare and refine a proposed sources and uses of capital plan for the duration of the project • Deliver a development plan for a financeable project including updated hard and soft costs • Assist you in selecting a project team (lead RFP process, conduct interviews and provide objective comparative matrix)

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Section II. Scope of Services

Development Services Deliverables Example: • Support debt placement efforts and identify financing from third party lenders • Obtain all governmental authorizations and approvals required for development • Develop and implement a site-specific Marketing Plan • Assemble an onsite Sales Team, and ensure goals for priority deposits conversions are met • Oversee project team meetings and activities s and related financial reports • Oversee the construction bidding process, including request for competitive bids, contract review and contract negotiations / manage all owner-direct contracts • Monitor all activities related to schematic design, design development and construction documents to ensure that they reflect your objectives • Provide project cost tracking, vendor billing, and validation of services • Oversee construction management including assistance with change order negotiation, resident selections and move in coordination where applicable - Arrange for furniture and capital item selection, procurement and installation • Conduct comprehensive “close-out” and leading the “punch-list” process

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Timber Ridge at Talus Issaquah, Washington

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Section II. Scope of Services

What Makes Us Different

LCS Development has come to provide the most comprehensive services in the country for the development, expansion and repositioning of senior living communities.

The only senior living developer with ALL requisite professional expertise in-house: • Design development consultants

• Marketing and Sales specialists

• Project and Construction management professionals

• Regulatory Compliance experts

• Debt Placement experts

• Proven Operations Management professionals

• Embedded Data Scientists & Market experts

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Section III

Our Process

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Section III. LCS Development Process

Overview of LCS Development Process LCS Development shares your vision and passion for reaching your community’s unique goals from concept to completion and presales to buyer retention. As a trusted leader in senior living development, LCS Development carries a unique combination of expertise that addresses both form and function at every phase on every project. Our dedicated inhouse senior living experts support you in making research-based decisions and confidently positions your project in the marketplace. Below we have included a conceptual illustration of our development process:

Go / No Go

Go / No Go

Go / No Go

Go / No Go

Go / No Go

Site Development

Design

Occupancy Development

Construction

Operational Transition

DEVELOPMENT PLAN

SCHEMATIC DESIGN

PROJECT FINANCE

PROJECT OPENING

STABILIZATION

•

Define project team

•

Architectural theme

•

Resident programming

•

Buyer retention

•

Select design team

•

Marketing plan

•

Design development

•

Construction oversight

•

Conceptual design

•

Priority sales

•

Advertising & public

•

Monthly project reporting

•

Move-in coordination

•

Building analysis

•

Identify funding sources

relations

•

Licensure

•

Program set-up

•

Market / Competitor

•

Site plan approval

•

Community outreach

•

Staff hire & training

research

•

Final schematic design

•

Sales workshops

•

Zoning requirements

•

Building permits

•

Project economics

•

Construction documents

•

Financing

•

Review of space requirements

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Section IV

Featured Projects

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Section IV. Featured Projects

Westminster Austin, TX

LCS Development to lead the final phase of expansion for Westminster to be complete in November 2026.

Read the news release here.

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Porters Neck Village Wilmington, NC

Type Life Plan Community Unit Mix Before Expansion Independent living: 248 Units Added in Phase I Independent living: 44 Master Plan Goal After Replacements and Additions Independent living: 300

Project Highlights • Master plan identified redevelopment as a long-term cost-savings measure to damage caused by hurricanes.

• Charming atmosphere of community was preserved while also adding market-rate apartment-homes and state-of-the-art amenities including expanded dining spaces, art studio, woodshop, garden area and dog park.

• Construction of 44 independent living apartments began in December 2021, including three 12-unit buildings and one 8-unit building.

Amenities Together with Porters Neck, LCS Development constructed a plan to expand and enhance the amenities already present in the community. This includes adding 44 new independent living residences with covered parking, a new art studio and wood shop, dog park, cocktail bar and game room, more indoor and outdoor dining options, and an expanded garden area.

Porters Neck offers on-site amenities like salon services, an indoor saltwater pool and fitness center with wellness programming.

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Rolling Green Village Greenville, SC

• Expanded and enhanced dining options

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Capital Manor Salem, OR

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Friendship Village Tempe Tempe, AZ

• Added pickleball courts, restaurant, lounge, and brewery - all on a rooftop. Added underground parking and pickleball locker room • In Phase 3, will add top floor sports bar complete with duckpin bowling lanes, a salon and barber shop, and assistance-in-living clinic LCS Development Overview Services // 28

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WhiteStone Greensboro, NC

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Eastcastle Place Milwaukee, WI

BEFORE

AFTER

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Heron’s Key Gig Harbor, WA

Type Life Plan Community

Project Highlights

Amenities

• Closed on $145,055,000 in bond financing.

Project Scope New Development, Second Campus

• Reached 70% reserved within 20 months.

The community, nestled in Washington’s Puget Sound, offers a concierge for residents, guest suites for visiting family and friends, scheduled transportation to events and social outings, farm-to-table dining, cooking demonstrations, resident coffee shop, a fitness center, a salon and spa, and walking trails.

Unit Mix Independent Living: 194 Skilled Nursing: 45 Assisted Living: 36

• Negotiated larger site with minimal financial impact.

• Averaged 6.5 sales per month following a 13-month priority sales period.

• Created opportunity for future Phase II construction with the completed site, zoning and design.

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Section V

The Power of Partnership

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Mel Lowell Board Member at Sinai Residences of Boca Raton

LCS Development brought the expertise we required to successfully add more than 100 independent living residences to the Toby and Leon Cooperman Sinai Residences of Boca Raton.

As a 5-star luxury senior community, retaining the right partner is important for our community. The LCS Development team’s expertise and attention to detail helped us manage a challenging and complex process to ensure that financing, permits, and construction were completed to achieve our goal of opening for resident occupancy by June 2022.

The efforts of LCS Development have added value to our - now expanded - best-in-class community, that will attract residents for generations to come – we are thankful for the knowledge of the LCS Development team, and the commitment they demonstrated to our project.”

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Cole Marvin Executive Director of Friendship Village of Tempe

I would say the experience of the people that I have worked with from LCS Development is the most impressive.

The team has an incredible amount of knowledge and gives me the confidence we are making well-thought-out decisions driven by real experience.

I have really enjoyed the collaboration where we gather and share information and ideas from other projects and apply the things that worked well while steering clear of ideas that didn’t go well. I also appreciate LCSD’s open minded approach and willingness to support some ideas that might be a little different or uncharted territory. Programming our rooftops with fun amenities like pickle ball, restaurant and brewery would be good examples.

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Ashley Wade Executive Director at Broadview

The community is beyond expectation in terms of physical structure finishes, technology, and AV capacity.

As the community has opened, the engagement with the residents in classroom spaces and dining venues, in the theater, and much more, has been outstanding.

It has been professionally rewarding and personally fantastic to welcome residents, many of who we have been working with for more than four years and see in their faces the pride they feel for their new residences and community and explore the opportunities the environment facilitates. It has been so very exciting to be part of something extraordinary and the launch has exceeded my expectations, but perhaps my most favorite part has been hearing my sentiment echoed by the residents, again and again!

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Peter Farewege Executive Director of Delaney at The Green

My favorite part of the development was the partnership with the LCS Development team. From my first day, I was included with decisions - if we had options on how to proceed with development tasks, I was able to weigh in on what would work best for operations.

I was empowered to contribute to contribute to ensure we were mindful of what would work best for the community once we were operating. An excellent partnership with Development - the team was and is extremely supportive and instrumental in supporting our SalesFIRST standards - working with WT and the construction team to establish “dusty boot tours” and other sales focused work / tasks that were needed to support our pre-sales efforts.

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Reed Vanderslik CEO of ThriveMore

I have been working with LCS Development for a little over a year. We don’t have the expertise to manage a Greenfield project like this and I really enjoy working with them and take great comfort from the fact that they also own and operate communities so they can speak my language.

As a mission-based organization, it is always great to expand the amount of older adults we will serve. What is really great about our New Bern project is the fact that there is nothing in that community today and residents who live there are having to leave the town they lived for decades and raised their children to find an equivalent Life Plan Community.

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Our Award-Winning Work LCS Development Overview Services // 40

Broadview at Purchase College

Westminster

Sagewood

2024 SHN Architecture & Design Awards

Friendship Village Tempe

Eastcastle Place

Sagewood

Rolling Green Village

3rd Place: CCRC Top Project Broadview at Purchase College – Purchase, NY

3rd Place: Renovation / Repositioning (Building) Westminster Village of West Lafayette – West Lafayette, IN

2023 SHN Architecture & Design Awards

2022 Environments for Aging Design Showcase

1st Place: Dining Innovation Friendship Village Tempe – Tempe, AZ

Honorable Mention: Sagewood – Phoenix, AZ

3rd Place: Renovation / Repositioning (Campus) Eastcastle Place – Milwaukee, WI

1st Place: Independent Living Sagewood – Phoenix, AZ

2020 SHN Architecture & Design Awards 3rd Place: Renovation or Repositioning Rolling Green Village – Greenville, SC

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