Mission Hills - Chanhassen Senior Facility

Chanhassen is on the verge of getting its first infusion of assisted living units in 14 years with a Lakeville developer’s purchase of land for a senior housing complex.

Headwaters Development of Lakeville plans to build a 152-unit senior housing complex on 8.67 acres at 8600 Great Plains Blvd. The development company first brought plans for its Mission Hills Senior Living project to the city in late 2014.

Construction is expected to start this spring, according to the facility’s management company, Minneapolis-based Ebenezer. Last week, the sale of the development property to Headwaters was made public in a certificate of real estate value.

A Headwaters-related company, Mission Hills Senior Housing LLC, paid $2.56 million in cash for the property. The seller was Klingelhutz Farms LLC of Chanhassen. The purchase price works out to $295,531 per acre.

The developer has picked Engelsma Construction of Minneapolis as the general contractor on the project, according to city documents. The architect is Sperides Reiners Architects of Bloomington.

Ebenezer will run day-to-day operations at Mission Hills. Susan Farr, Ebenezer’s vice president of business development and marketing, said the growth of assisted living in Chanhassen has been slow because the city’s population trends younger. But more seniors who might need assisted living services are moving to Chanhassen to be near their families.

“Now there are a lot of grandchildren there and the grandparents would like to be near their grandchildren,” Farr said in an interview.

Only 7.7 percent of Chanhassen residents were older than age 65 in 2010, according to the U.S. Census Bureau.

Mission Hills is one of eight Minnesota senior projects currently under development that Ebenezer will manage, Farr said. The company manages 72 facilities in the state.

Michael Hoagberg, the managing member of Mission Hills’ development company, did not respond to multiple requests to comment on the senior housing project.

The last time assisted living units were built in the city was in 2003, when Presbyterian Homes opened its SummerWood of Chanhassen at 525 Lake Drive, said Kate Aanenson, Chanhassen’s community development director. SummerWood offers 90 independent living apartments and 63 assisted living units, she said.

“It’s been a while since we’ve done the assisted living,” Aanenson said in an interview.

In the interim, developers have built a “variety of senior housing options” in Chanhassen, including condominiums and apartments, Aanenson said.

Mission Hills will build a 134-unit main building that includes independent living, assisted living and memory care apartments, according to city documents. It will also build nine twin homes, which will create 18 more independent living units.

The developer is also planning to build a child-care facility on the property. Child care integrated into senior facilities is something Ebenezer is used to, Farr said. It oversees similar facilities at its Arbors at Ridges assisted living facility in Burnsville, and at its TowerLight senior residences in St. Louis Park.

When Ebenezer places child-care centers on its senior campuses, it runs an “intergenerational program” that “helps build health relationships between the young and old,” according to its website.

Demand for assisted living is growing in Chanhassen, Farr said. She said about 300 seniors in the area suffer memory issues that could be served by more memory care units.

More senior-oriented housing is under construction, said Chanhassen’s Aanenson. Lyon Contracting of St. Cloud is building the 76-unit Powers Ridge Senior Apartments at 1351 Lake Drive. That project will open for residents on Jan. 1, according to a Lyon Contracting spokeswoman.

Article originally posted on Finance-Commerce.com on March 6, 2017.