Deerfield Episcopal Retirement Community in south Asheville is planning a nearly $400 million expansion that will include about 200 units.
The project proposes about 165 additional independent-living apartments, 10 assisted-living units, 12 memory care units and 12 skilled-nursing beds. Also included in the plan is a community center with dining and administrative space. The campus now consists of more than 500 units that house more than 650 residents.
On Tuesday, the N.C. Local Government Commission approved Deerfield’s request for backing by the N.C. Medical Care Commission for $395 million in bonds to be issued for the project. Asheville City Council in September approved Deerfield’s plan to add six new buildings and additional parking.
Construction will start early next year and is expected to be completed in 2028, spokeswoman Faith Perkins says. Whiting-Turner Contracting is leading the construction.
Because of the expansion, Fitch Ratings last week downgraded Deerfield’s credit rating to BBB+ from A-. That remains an investment-grade rating under Fitch’s system.
Deerfield is benefiting from a strong retiree interest in the Asheville area with a waitlist of about 1,600 prospective residents, Fitch noted in a November report. It has averaged a 97% occupancy rate in its independent living quarters over the past five years, while its smaller assisted-living and skilled nursing facilities have been in the 87% to 88% range, according to Fitch.
“Minimal competition suggests ILU occupancy will continue to be strong, especially given the community’s sizable waitlist,” Fitch noted. “Deerfield continues to implement rate increases above historical levels due to the economic headwinds the industry is facing,” it said, citing annual increases of 5% over the past three years.
About 30% of Deerfield’s current residents are from outside North Carolina.
In 2024, the not-for-profit had revenue of $61.8 million and expenses of $43.6 million, providing an $18.3 million excess, according to Deerfield’s annual report. Net assets totaled $109.6 million.
Deerfield started in the 1950s as a project of the Episcopal Diocese of Western North Carolina, aided by a donation from Charles and Marjorie Timson. Previous expansions occurred in 1999, 2010 and 2017.
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.