CSL transforms residences into success stories.

Chelsea Senior Living, LLC, which owns and manages eight assisted living residences in New York and New Jersey, has transformed two once-failing residences into successful luxury assisted living complexes in less than six months.

CSL purchased The Blythe House in Manalapan, N.Y., now called The Chelsea at Manalapan, and The Blythe House in Tinton Falls, N.J., now called The Chelsea at Tinton Falls, last June with the goal of expanding its presence in New Jersey. Under CSL, The Chelsea at Tinton Falls has seen a 45% increase in occupancy and is now 100% full, while The Chelsea at Manalapan has seen a 33% increase in occupancy.

"In my 35 years of being in this business we have never turned around a residence this quickly," said Herb Heflich, chairman and chief executive officer of Chelsea Senior Living.

Heflich believes that the market for assisted living has begun to turn around and will continue to be strong.

"Before there were simply too many assisted living properties and the market was saturated," he said. "Now those residences are filling up. We're definitely excited about our prospects for the future."

When CSL first learned of the two assisted living residences they had combined losses of $75,000 a month. Initially, CSL proposed a joint venture with the owner, but the owner was reluctant to relinquish management responsibilities and control to a third party. So instead, CSL purchased the mortgage for approximately 65% of its value, then obtained permanent financing from Merrill Lynch. In five months the two residences became profitable.

CSL spent approximately $150,000 on renovating and redecorating common areas with new carpeting, furniture, air conditioning systems and a fresh coat of paint. The marketing team readjusted the pricing of the residences to market rate and allocated rooms for respite care for daily and weekly rental.

Staff changes were also made. Previously, the residences had an extremely high staff turnover rate. CSL stabilized and reassigned employees to create a steady and consistent management and nursing staff that now better serves the residents of both locations.

A significant change made to the two locations is the addition of CSL's trademark Alzheimer's treatment program, known as The Country Cottage.

The program offers a friendly, supportive and secure environment, where residents with Alzheimer's or memory impairment can live with comfort and dignity.

Residents in The Country Cottage receive mental and cognitive stimulation and encouragement that preserves skills and helps them maintain the highest possible level of independence.