Building a real
assisted living facility.
The easy way.
A 16-bed+ Type A or B facility is the big one — construction, contracting, civil engineering, zoning, and serious financing. The difference here: you don't juggle it. We line up the property, the loan, the team, and the paperwork, and walk you through it one clear step at a time.
Two roads — pick the one that fits you
The big facility has the big revenue — private-pay assisted living in Texas averages around $5,250 per resident per month, and a 30-bed building is a real business. It's also a $5M–$16Mground-up project where financing, zoning, and construction all have to line up. The good news: you don't line them up — we do.
If your goal is to start earning sooner with far less capital, an owner-occupied Adult Foster Care home (≤3 residents) is the small-and-fast road — we walk you through it on the Real Estate page. Many operators start small, prove they can run it, then build big. This page is for when you're ready for big — and we carry you through every step below.
The 5 steps of a ground-up build
Here's the whole path, start to finish. The steps overlap — financing closes while design finishes, lease-up starts before the last bed is built — and we keep them moving in the right order so you're never the bottleneck.
Feasibility & site control
Step 1 of 5We confirm the demand for your area, run the zoning on your target site, and get the land locked up under contract or option. Zoning and entitlement is where most big projects die — so we settle it up front, before you commit a dollar to the wrong parcel.
Design & predevelopment
Step 2 of 5We bring in the architect and civil engineer and steer the drawings to satisfy Texas HHSC physical-plant rules — bedroom square footage, bathroom ratios, egress, fire safety — so nothing gets kicked back. Predevelopment (plans, engineering, environmental, permits) commonly runs $1.5M–$3M on a large ground-up project, and we line that up before a shovel touches dirt.
Financing close
Step 3 of 5Vanda structures the construction loan — funded in draws, interest-only on what’s drawn, usually around 70–75% of project cost — and the permanent take-out it converts into: SBA 504/7(a) for owner-operators up to $5M, or HUD 232 for larger licensed facilities at the lowest long-term fixed rate. One person runs the property and the money.
Construction
Step 4 of 5The general contractor builds while we manage the draw schedule, inspections, and lien waivers that release each round of funding. You get progress, not paperwork — we keep the lender, the GC, and the inspectors moving in lockstep.
License, lease-up & stabilize
Step 5 of 5We prep and shepherd the HHSC licensing survey and certificate of occupancy, then hand you a marketing and move-in engine to fill the beds. Empty beds still carry the mortgage, so we plan your operating runway from day one — you’re never staring at an empty building wondering what’s next.
What it really costs
The numbers, sourced and current
These are 2025–2026 market figures (CBRE, RSMeans, Senior Housing News, industry data). Your project will vary — treat them as planning ranges, not quotes.
Hard construction cost
$280–$452 / sq ftStandard AL on the low end; high-acuity / memory care on the high end (2025–2026)
All-in development cost
~$317,400+ / unitCBRE 2022 benchmark (70% hard / 18.5% soft / 8.2% land) — costs have risen since, so treat as a floor
Predevelopment (before construction)
$1.5M–$3MArchitecture, engineering, environmental, permit fees
Adaptive reuse (convert a building)
Saves ~37–50% / sq ftVs. ground-up — but heavy reuse on a bad building can cost MORE
General contractor fee
10–20% of project20–25% for complex senior-care systems coordination
Civil engineering / site design
$20k–$150kOr ~1–8% of site cost depending on entitlement complexity
Zoning / land-use attorney
$200–$600 / hrOr ~$1k–$5k flat for straightforward transactional work
Soft costs (A&E, financing, carry)
~18.5% of totalArchitecture and engineering fees live inside this
Rough all-in math
Starting from a ~$317,400-per-unit floor (CBRE 2022, higher today), a 16-bed facility pencils around $5M+, a 30-bed around $9.5M+, and a 50-bed around $16M+ ground-up. Converting an existing building can cut the per-square-foot cost 37–50% — if the bones are good.
The team — already assembled for you
A big build is a team sport, and missing one player stalls the whole project. You don't have to go find them. Vanda covers the property and the lending, Erika's AI handles the compliance paperwork, and we coordinate the rest of the bench so it all moves together.
Zoning / land-use attorney
Gets the property legally allowed to be a facility — the #1 deal-killer if skipped.
Architect
Designs to HHSC physical-plant code: room sizes, bath ratios, egress, fire safety.
Civil engineer
Site work — grading, utilities, drainage, fire access, ADA parking.
General contractor
Builds it, coordinates subs, manages the draw schedule and inspections.
Lender
Construction loan + permanent take-out. Vanda can quarterback this.
Compliance / paperwork
P&P manual, licensing package, staffing docs — where Erika’s AI service comes in.
Ready to actually do this?
Three pieces. We can help with all three — and the paperwork is the part AI makes effortless.
Land & property
Find a site that can be zoned and built for care — or convert an existing building.
Property help →Financing
Construction loan, SBA, HUD 232 — Vanda matches the money to the project.
Get financing →Compliance paperwork
P&P manual, licensing package, staff docs — our AI service does it for you, the easy way.
Hire Erika ($3,500) →