"We have a couple of other projects that are in the process with Heritage, but we realized we needed to build our own capabilities, have more control and direct our vision and cater to the need in this market. We have the capital to do many of these, and our goal is to do a lot. We need to enhance our management capabilities to do all that."

Accordingly, all future seniors housing projects will be built and operated solely under Delancey Senior Living, though Wachs isn't ruling out future partnerships with Heritage. The firm's primary focus right now is on acquiring land on which it can develop new properties. The executive expects Delancey to have two to three buildings under way within the next 12 months.

On the capital side, he says, "we expect to use our own funds and that of high net worth investors we've worked with in the past. But if opportunities arise to work with other investors such as institutions, we would consider it. In that case, we may do a specific fund for a series of buildings."

Indeed, seniors housing as an asset class is steadily gaining in popularity among developers and investors of all stripes. Even institutions have moved from merely dabbling in the space to allocating funds specifically for senior living investments, particularly for independent living. What differentiates Delancey Senior Living from the other new players in the field, says Wachs, is its operating platform. "This has been in the planning stage for several years, so this is not a capital markets-driven decision," he says. "Good deals always find money."

And while most of the story when it comes to seniors housing is focused on the future--particularly, the expected rise in demand due to the Baby Boom generation--Wachs maintains that the need in the market today is more than enough to generate business.

Indeed, fundamentals for the independent living space are strong despite the down economy. In the first quarter of the year--the most recent data available from the National Investment Center for the Seniors Housing and Care Industry--the average occupancy rate for independent living stood at 92.1%, a 330-basis-point increase from three years earlier. Operators also reported that they were able to push up rents as well.

"We're not investing today for something that's going to work in 30 years," says Wachs. "We're investing today because there's a need today for a new product that addresses the wants and desires for that segment of the market. We're giving them a higher quality than the existing product that's out there."