However, while the number of active adult communities is increasing every year, the concept of age-restricted communities is relatively new in many areas. Thus, it is often necessary to educate both the city and town officials and planning boards that approve such developments, as well as the people who will move to these new neighborhoods, and that's where our story begins.

After being in commercial development for a number of years, Katz Development Corporation entered the residential market in 1991 in Chelmsford, Massachusetts (about 30 miles northwest of Boston) with a 62-unit development of single-family condominiums. Since then our company has grown from building 25 homes a year to 60 homes in 1997. Currently, we are working on two single-family subdivisions of 45 and 56 homes each, and on our newest development, The Village at Meadowood, an active adult community of 71 homes. Our success with that neighborhood has encouraged us to undertake yet another community designed for active adults in Exeter, New Hampshire, which will open in spring 1998.

In every development, our normal process is a turnkey operation. We option raw land, procure the necessary permits, develop the infrastructure, and build and market the homes.

Educating Town Officials

In 1995, Katz Development submitted plans to develop 65 units of age-restricted housing on a 20-acre parcel. The proposal was defeated at the Chelmsford town meeting, with town officials and the general public skeptical that our intentions weren't merely a smoke screen to rezone an industrial parcel for residential use. In particular, the town was concerned about creating an added burden on the school system, fearing that another residential development would attract families with school-age children. At that time, active adult communities were still relatively unknown, with very few by-laws existing for such housing in other Massachusetts towns.

In 1996, the Town granted a variance to another developer to construct two assisted living projects, one for an Alzheimer's clinic and another for 88 "cottages" (a mix of single-family, duplex, and triplex condominiums). The developer decided not to proceed with the cottage section of his development, so Katz Development took an option for that parcel of land and proceeded to get approvals for an age-restricted community of 71 detached, single-family condominiums to be built in four phases on 26 acres.

After learning more about the positive aspects of seniors' housing during the approval process of the assisted living project, the town was receptive to our plan for an age-restricted community, especially when we agreed to reduce the number of homes from the original 88 cottages which were planned to 71 residences. Chelmsford finally realized that such projects meet a town's housing needs for its active adults while adding to the town's tax revenues, without placing a greater burden on the public school system

Turning Site Conditions Into Marketing Advantages

The high density of our land plan required us to connect to town sewerage. We also had two detention ponds (approximately 1.5 acres) which were required to provide adequate drainage for the site. Due to the central location of these ponds in the middle of our first two phases and directly behind our clubhouse, we decided to make them more attractive to they could become a marketing feature rather than an eyesore. After lining the edges of each pond with granite riprap, landscaping and a fountain were installed in each pond, which provided attractive "water features" that residents could enjoy for three seasons of the year. We converted what could have been our most difficult selling phases into some of the most requested home sites because the back yards of these homes overlooked our "ponds" and a nine-hole putting green.

Finally, The Village at Meadowood was approved in April 1997, purchased in May 1997, and formally opened with a new fully-furnished model and sales center in early October 1997. With 32 sales already by early March, we exceeded our annual sales goal in less than six months.

Target Markets

Due to the demographics of the area, we developed our marketing programs and home designs to appeal to the younger market niche of active adults (primarily in their mid-50s and early 60s). Usually both spouses work and spend their weekends playing golf, skiing, traveling, and enjoying other activities. Their goal is to have a maintenance-free lifestyle that gives them the freedom and flexibility to use their leisure time as they wish, rather than being tied to exterior home and yard maintenance.

We also know that there is a strong interest in golf in the area with four public and private courses within a 15-minute drive of The Village at Meadowood. Thus, the names of the streets (Augusta Way and St. Andrews Way) and our four home designs (The Pine Valley, The Pebble Beach, The Augusta I and The Augusta II) lent themselves to creating a golf,theme for the neighborhood.

Home Designs for Today's Active Adults

One of the keys to the success of The Village at Meadowood has been the floor plans - a Cape Cod-style exterior design with interior spaces that are filled with a bright, open felling. Transoms above windows and doors and vaulted ceilings in living rooms and bedrooms provide openness that many buyers find refreshing after living in older, more traditionally designed homes for 20 or 30 years.

First-floor master suites with large, walk-in closets and attached two-car garages are almost prerequisites for the market niche, especially for the younger buyers in New England who have two cars and must cope with harsh New England winters.

In addition, interior spaces focus on large eat-in kitchens with adjoining dens for casual living. Most designs also include a formal living room and dining room to accommodate the furniture these buyers have collected over the years. Angled walls and large (12 square feet) deck off of the den or living room are also popular with these buyers.

On-Site Amenities

The presence of a clubhouse where residents can meet to socialize, play cards, have neighborhood parties, and enjoy other activities is an important part of the active adult community concept. Because The Village at Meadowood is a small community with only a limited number of resident fees to support it, we kept the clubhouse modest and designed for flexible space. The 1,200-square foot facility is located near the community entrance, adjacent to the furnished model and overlooks both the nine-hole putting green and the ponds.

The Sales Team

One of the key ingredients in our sales success has been the on-site sales director, Donna Johnson. Donna is a youthful woman in her early 50s, has an extensive knowledge of the town, and a strong network of contacts among brokers and the general public. Her equally youthful husband is an ex-selectman in town who assists his wife on weekends. Both are avid golfers, very outgoing, and very low key, but enthusiastic in their sales presentations.

The prospective buyers find the sales team's enthusiasm for the area and the development to be contagious. They establish a rapport with the team immediately and can imagine having the Johnsons for neighbors.

Donna commented that people love The Village at Meadowood's home designs (very open and bright with lots of natural light through carefully placed windows). The fully merchandised model features many options and upgrades, which Donna says are in high demand. "For years these buyers have sacrificed for their children, paying for college, weddings, and the like. Now it's time for them to have fun and to build a home and finish it the way they want...from the upgrades in flooring and countertops to a finished basement or screened-in room off of the family room," she commented. Donna highly recommends including such upgrades in the model because this age group has difficulty imagining what some of the features might look like. Obviously, it's worth the investment because many buyers add between $20,000 and $30,000 worth of options and upgrades in their homes.

Advertising & Public Relations

To develop a professional marketing program, Katz Development hired a marketing communications firm that specialized in marketing active adult communities. Their involvement ranged from designing the logo and sales collateral materials and sales center displays to newspaper ads and public relations. The investment proved more than worthwhile.

The sales collateral provided a bold, graphic look with what appeared to be oversized floor plans. The same artwork was used for large displays in the sales office, supplemented by a site plan and community-points-of-interest map.

The initial print ads established the golf theme showing a couple in their mid 50s putting, with a headline that read "Spend more time perfecting your greens instead of maintaining them." Public relations helped to add local interest in the site with feature stories appearing in area papers along with a news clip from our grand opening ceremonies appearing on the local cable news station. Reprints of the feature stories are distributed with other collateral materials. The stories included quotes from new home owners who raved about living at The Village At Meadowood.

Do Your Homework

If you are seriously considering entering the active adult market, be sure to do your homework. Know the marketplace, the buyers, the brokers, the town officials. Learn hot buttons regarding home designs, options and upgrades, and on-site amenities. The rewards of building for this growing market are great, but, like any other business venture, the more you prepare up front, the greater your chances for success.

Eric Katz is president of Katz Development Corporation of Chelmsford, Massachusetts. His family-owned business has been building residential and commercial developments for more than 30 years. His marketing communications firm is Carlson Communications in Northborough, Massachusetts, For further information, call (508) 393-9922.