The owner of a ComForCare franchise location identified the “perfect segue” into a new market with the purchase of an independent living facility.
Nikhil Mehrotra, owner of a ComForCare franchise in Farmington Hills, Michigan, purchased Comfort Cove, an independent living facility in West Bloomfield, Michigan, in March. The expansion into independent living allows the home care provider to retain clients longer while enhancing continuity of care, Mehrotra told Home Health Care News.
“It looked like a perfect segue, that when you are supporting a person at home, but it gets to a stage when they cannot stay at home safely and financially … then they get advised to move to a facility,” Mehrotra said. “What motivated me is that I was enjoying what I’m doing for the care part, and it will be just further continuity. … When they want to move into a facility, we have a facility where they can move and have the same faces, the same caregivers.”
Bloomfield Hills, Michigan-based ComForCare is a home care franchise company with over 250 locations throughout the U.S. Its offerings include support with activities of daily living and private duty nursing. The company also operates a specialized dementia care program.
Mehrotra expects a smooth integration of the independent living business due to synergies between the home care and independent living markets.
His choice to purchase Comfort Cove, among other independent living facilities, was driven primarily by its location. The facility is 10 minutes from Mehrotra’s residence, he said, allowing him to operate efficiently and leverage existing relationships with hospitals and social workers in the area.
The newly purchased facility is an 84-unit building, according to Blueprint Healthcare Real Estate Advisors, which was an advisor to the privately held REIT that sold Comfort Cove. Comfort Cove offers assisted living care services and respite stays.
Mehrotra said he plans to expand further into independent living, aiming to buy “at least” three to five more facilities in the Detroit area over the next few years.
Mehrotra reported that his ComForCare operation has experienced significant growth in the past three years. The at-home care market is a “good place to be”, Mehrotra said, but is very competitive.
“Anytime when your cost of entry is [low], a lot of people enter, but they are not able to survive for long,” Mehrotra said. “The demand is there, somebody is not getting [in the at-home care market] just for money. They really care.”