Intergenerational care facilities generate income from both assisted living fees and childcare fees. WVU research shows they break even at less than 50% occupancy — well below the industry average.
Traditional senior care facilities rely on a single revenue source. KinHearth generates revenue from two separate, stable markets — each with strong demand and limited local supply.
| Revenue Stream | Unit Pricing | Capacity | Annual Revenue |
|---|---|---|---|
| Assisted Living Private rooms, 24/7 care |
$6,500/mo per resident | 40 beds | $3.12M |
| Daycare & Pre-K Infants through age 5 |
$1,400/mo per child | 60 children | $1.01M |
| Supplementary Respite care, adult day programs, events |
Varies | As available | $180K |
| Total at Full Occupancy | $4.31M |
West Virginia University's research on intergenerational care facilities found that dual-revenue models achieve break-even at significantly lower occupancy than traditional single-program facilities.
Traditional assisted living facilities need 75-85% occupancy to break even. By combining two revenue-generating programs under one roof, KinHearth shares fixed costs (building, utilities, admin, kitchen) across both wings — dramatically lowering the break-even threshold.
A single building with two wings shares HVAC, plumbing, electrical, kitchen facilities, laundry, administrative offices, parking, and exterior maintenance. Conservative estimates put shared infrastructure savings at 30-40% compared to operating two separate facilities.
The common room — the heart of the intergenerational model — is also the facility's greatest operational efficiency. One space serves both programs, requiring no additional construction beyond what either wing would need independently.
| Expense Category | Annual Est. |
|---|---|
| Staff (nursing, childcare, admin) | $1.9M |
| Facility operations | $420K |
| Food service | $310K |
| Insurance & compliance | $180K |
| Programming & supplies | $90K |
| Total operating costs | $2.9M |
Conservative projections assuming gradual ramp-up. Assisted living fills slower (6-12 month waitlists are common in Alaska); daycare fills faster due to extreme local demand.
| Metric | Year 1 | Year 2 | Year 3 | Year 5 |
|---|---|---|---|---|
| Assisted Living Occupancy | 45% | 65% | 80% | 92% |
| Daycare Enrollment | 70% | 85% | 95% | 100% |
| Total Revenue | $2.3M | $3.2M | $3.9M | $4.3M |
| Operating Costs | $2.5M | $2.8M | $2.9M | $3.1M |
| Net Operating Income | ($200K) | $400K | $1.0M | $1.2M |
Both assisted living and childcare in Alaska face severe supply shortages. KinHearth enters a market where demand already exceeds capacity.
Construction costs for a 25,000-35,000 sq ft facility in Anchorage, including both wings, common areas, outdoor space, and specialized medical/childcare infrastructure.
KinHearth is positioned to access multiple funding streams beyond traditional financing — including New Markets Tax Credits, USDA Community Facilities grants, Alaska Native corporation investment programs, and state childcare infrastructure funds.
Site selection, feasibility study, community engagement with Alaska Native corporations and tribal organizations. Secure letters of support and initial funding commitments.
Architectural design with dual-wing layout, licensing compliance for both assisted living and childcare. State and local permitting. Construction bid process.
Ground-up construction of the facility. Phased approach allows early occupancy of the daycare wing while assisted living wing completes final fit-out.
Staff hiring and training. Daycare opens first (faster fill rate). Assisted living begins accepting residents. Full intergenerational programming launches within 90 days of both wings operating.
State-specific data on elder care gaps, childcare deserts, and Alaska Native corporation investment alignment.