Tri-State Telegraph Herald
Developer targets a 50-unit senior cooperative apartment complex near the Asbury Park.
Luther Manor officials are working with a specialized, St. Paul, MN-based developer to crate a planned 50-unit facility for senior cooperative apartments.
Each member of the cooperative will purchase a share in the limited equity corporation. The shares provide the equity to secure a mortgage, and each membership has an equal voting status in electing a board of directors that monitors building operations.
“This is going to be pretty innovative,” said Mark Noble, Luther Manor’s executive director.
Luther manor owns a 25-acre field near Asbury Park. The non-profit organization conducted feasibility studies to determine what to do with the land.
“We heard about senior cooperatives,” said Noble. “It is a new concept, and there are very few outside of Minnesota.”
Durint the course of their research, Luther Manor officials determined that cooperatives have become popular among younger, active older adults. However, they also determined that non-profit organizations often struggle when attempting to create cooperative facilities.
“So we approached Real Estate Equities, out of St. Paul, MN,” Noble Said
The developer has built senior cooperatives in its home state, and now is beginning to build such facilities in Iowa. Village Cooperative is the name of the planned Asbury development.
While the average age of residents at Luther Manor apartments is 89, Betty Apelian, of Real Estate Equities, said the average age of cooperative residents typically is 73.
Noble experts cooperative living to appeal to his fellow Baby Boomers.
“The Boomers I know what to have involvement in things,” he said.
Share prices range from $34,000 to $65,000, depending on the unit size.
Members purchase a share in the cooperative corporation. If a member decides to move, the cooperative has the first option to buy the share, facilitates the sales process and returns the member’s share cost plus accrued equity.
Members also pay monthly fees that cover operating expenses, including the mortgage principal and interest, real estate taxes, interior and exterior maintenance, water, sewer and trash removal.
Luther Manor officials will sell three acres of its Asbury project to Real Estate Equities, which is gathering reservations for the planned cooperative’s 50 units. Once half the units have been spoken for, Real Estate Equities will move towards breaking ground.
“When it is filled, it will be owned by the residents,” said Noble. “They will elect a board of directors internally, and Luther Manor and Real Estate Equities will provide supportive services, based on what the board of directors wants.”
The first senior cooperative opened in 1978 in Edina, MN with 338 units.
“There are now 95-100 senior cooperatives in the country, with 70 of those in Minnesota,” said Shane Wright, Real Estate Equities project manager. “It has been a really successful formula. It opens up a home for younger generates to move into.”