Developer Focused on For-Rent Housing for 55+ Adults Launches in Denver
According to the Population Reference Bureau (PRB), the number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060. Despite a growing demand for housing targeted at this demographic, severe housing supply shortages and an overall lack of affordability have led to an enormous rental housing crisis.
In an effort to successfully combat this issue, Headwaters Group, a vertically integrated real estate owner and developer based in Denver, officially launched its operations this week. Headwaters will focus on addressing gaps in the housing market by developing for-rent communities that empower active 55+ adults to live better.
A team of seasoned commercial real estate professionals, including Managing Partner Ben Burke, SVP of Operations and Finance Chris Ducay, SVP of Development Jeff Hoffman, and Director of Investments Lauren Napheys leads Headwaters Group.
In addition to raising its own discretionary capital general partner (GP) fund to pursue and co-invest in new investment opportunities, the company recently entered into a programmatic joint venture with a global asset allocator that brings significant experience in the active adult market.
“With Headwaters Group, we’re leveraging our core principles and data to identify emerging, demographically driven opportunities and create disciplined investment processes to deploy capital at scale,” said Burke. “Our goal is to meaningfully address the massive gap in the market for compelling, lifestyle-driven, attainable for-rent housing for 55+ adults. We believe there’s a better way to age and are committed to improving our communities through customer-focused real estate and operational solutions.”
Headwaters will develop its own communities for active 55+ adults in the western half of the U.S. as well as acquire communities across the country. The company currently has four projects in various stages of development: three in Colorado and one in Arizona – all of which are expected to break ground in 2023. Additionally, Headwaters will close soon on the purchase of a community in Salt Lake City, Utah.