"Children see that their parents are enjoying life": Longevity has conquered Israel

"We appeal to people from the 8-10 deciles. These are the residents who come to us. We are a premium product, not a product that suits everyone," says Tomer Rosenberg, CEO of the Ad 120 network, which offers luxury Longevity housing for the third age.

Recently, the network launched a new complex in Modiin with an investment of about 600 million shekels, and according to Rosenberg's estimate, "in the next four to five years we will grow three times over. I estimate that along the way, the issue of an IPO will also come up for discussion."

The Ad 120 network, owned by the Shapir Engineering group and Phoenix, currently operates five luxury assisted living complexes in Tel Aviv, Hod Hasharon, Rishon Lezion, Kfar Saba, and Modiin, where about 1,000 residents aged 70-100 live.

The beginning of Ad 120 was in 1992, as a network operating assisted living homes. With Rosenberg's entry into the position in 2023, the process of turning the network into residential complexes at the level of five-star hotels based on Longevity principles for successful longevity began. In addition, in the network's new projects, spacious apartments of 75 sqm are now offered. "The average apartment in assisted living networks across the country is 50-60 sqm," notes Rosenberg, who came to his current position with over a decade of experience in a senior management role at a competing assisted living network.

Extending and appreciating life

The field of Longevity, which is currently attracting great interest around the world, focuses not only on extending life expectancy, but on maintaining quality of life, independence, and physical, cognitive, and mental vitality over time. According to Rosenberg, "in the network's complexes, there is thinking about the individual, while identifying the subjective need of each resident in order to allow him to live with optimal quality of life and improve his indicators on a cognitive, physical, mental, and nutritional level. For each resident, a personal work plan is built that touches on aspects of strengthening the body and movement, strengthening thinking and cognition, personalized nutrition, content and meaning, balance and well-being, and a rich social and community life. I don't expect anyone to live to 120, but in the years he lives with us, let him live in the best way possible."

In the new complex in Modiin, which was launched towards the end of June, one can find two, two-and-a-half, three, and four-room apartments. All apartments in the project include balconies, and residents are also offered private parking and storage. According to Rosenberg, a third of the project has already been sold.

At the heart of the new complex operates a Longevity center, offering residents a broad professional envelope under the supervision and guidance of leading professionals. The center includes, among other things, a studio for cognitive training, personalized nutrition programs, a gym, a heated and covered semi-Olympic pool, a Pilates studio with equipment, a music room, a ballroom dance studio, movement classes, yoga, Feldenkrais, water activities, music therapy, and more. In addition, there is a restaurant and cafeteria, a sports center and spa, a clinic, a physiotherapy institute, commercial areas, a synagogue, and diverse community spaces.

The culinary consultant of Ad 120 Modiin and the one responsible for the restaurant menu in the complex is chef Shahaf Shabtay. At the entrance to the complex, a digital and media center was established, allowing residents to experience innovative digital tools and enrich their world. Among the green spaces in the complex, one can find an orange orchard, a vineyard, a flower garden, a lemon orchard, and a herb flower garden.

Entry into assisted living in Israel involves payment on two levels anchored in the Assisted Living Law. One is a one-time deposit payment upon entry into the assisted living, which is determined in relation to the appraisal of the apartment chosen by the resident. In the classic track, a pre-defined percentage is eroded each year for 12-13 years, so that at the end of this period, about 50%-60% of the deposited amount is eroded and the balance is kept and transferred to the heirs at the relevant time.

An additional, monthly payment is maintenance fees that reflect the resident's current expenses, including apartment cleaning, maintenance services, sports activities such as a pool, jacuzzi, gym, medical services, and cultural and community activities.

In the Ad 120 network, Rosenberg notes, the deposit amount also depends on the project's location, and can range from 2 million shekels to 7 million, with the most expensive price being in the Tel Aviv complex. In the new complex in Modiin, for example, the deposit is 2-4 million shekels, depending on the apartment size. Maintenance fees in the network range from 9,000 to 15,000 shekels per month, depending on the complex and the track. The more expensive price is for "all-inclusive" in large apartments in Tel Aviv. "All-inclusive," he explains, is a new model built this year in the network, "which came as a need from the field, from customers who wanted peace, those who prefer to pay for everything at once, including municipal tax, electricity, water, food."

Do the residents' children not complain that the parents are "wasting" the inheritance? "Today, children actually highly appreciate the fact that their parents are enjoying life. If a decade ago the decision to move to assisted living was 70% by the parents and 30% by the children, today the trend is about 50%-50%. Many children come to inquire for their parents. They understand what it does for the parents. One of the central components that must be dealt with in the third age is loneliness. In the world, it is already understood that loneliness is a kind of disease. When you are in a community, active, it makes you happier, more vital. Life in assisted living, in my opinion, only extends life."

Despite all the pampering and abundance, there are those who can pay - and will still prefer to grow old at home. "Certainly, the home can also be a pampering place. It depends on a person's need. There are those who look for more community, to meet new people. There are also both, everyone is an individual."

Promoting from within

According to data from the Central Bureau of Statistics, at the end of 2024, the population of senior citizens in Israel numbered about 1.286 million people (about 13% of the total population of Israel at that time). About 4% of senior citizens lived in various institutions: 66% in nursing homes and assisted living, 31% in hospitalization institutions and hostels, and 3% in other institutions. Following the increase in life expectancy, the expectation is that the number of senior citizens will reach about two million by the year 2040.

The biggest challenge in managing the network he heads, says Rosenberg, "is to create a place where the customer experience is optimal and improves over time. The demand for the product grows over the years."

Does the demand change according to areas in the country? "Today the central demand is between Gedera and Hadera. We are looking for areas where there is a public with financial capabilities that wants quality and where the number of assisted living projects is not very large. Today we are building the first luxury complex in the north, in Kiryat Motzkin, which is expected to open in 2028. We are also building in Ness Ziona and Jerusalem (expected: 2029). A complex is also planned in Kiryat Ono (expected: 2031)."

According to Rosenberg, the demand for assisted living will only grow. "Even most financial bodies look at this field as a leading field," he notes. "The assisted living field is very strong today. Life expectancy only rises from decade to decade. There is also an audience with quite a bit of money in this country, people who know how to appreciate the services given to them and who want to live their lives in the best way."

And yet, the data shows that less than 4% of the third age are in assisted living. "Ultimately, in the private market of the leading luxury assisted living networks, there are 18,000 units for independent people who are not nursing-dependent. New projects that will open will also attract additional audiences. There is great potential for this. By the way, if the state provided financial solutions for entrepreneurs, we would manage to create an economic and profitable investment model also for the 6-8 deciles and build such complexes as well."

You are not the only network in the industry that positions itself around the Longevity concept. "Competition is an excellent thing, I encourage everyone. There are several excellent companies. I think we lead the innovation in the field, we are the pioneers. No network does what we do. There are those who try to resemble us, to imitate. Because there is demand for luxury assisted living projects, then all the projects of all the networks are at very high occupancy, of about 95%."

When it comes to assisted living at such a luxury level, the bar of expectations from the staff is in the sky. To what extent is recruiting employees a challenge? "Every complex of ours is like a hotel. There is a management team, housekeeping, maintenance, culture, and more. In every complex, there are about 70 employees. I don't encounter a recruitment problem. In terms of managers, I build a management reserve in my network, promoting from within. We are also a very attractive destination for people 50 plus who are looking for work. I really believe in such an audience. It's not the young generation that changes jobs every two years. People 50 plus know how to appreciate, to give of themselves. We have at these ages care personnel, social workers, doctors, nurses, Longevity field managers, people responsible for culture. There are also maintenance and housekeeping personnel. I look for interesting employees who will give added value. With me, it's not a hotel that you leave after three days. Therefore, you need to find employees who can be service-oriented, who have a giving ability beyond the average, otherwise you don't survive the event."

Couples are also created

Rosenberg explains that according to the Assisted Living Law, if a complex has over 250 apartments, it must also have a nursing department. "With us, in all complexes, there are nursing departments, to which the resident can move the moment he is no longer independent. By the way, if during his stay in assisted living he feels a physical or cognitive decline, he can bring a caregiver to his apartment for a relatively minor payment."

The residents in the various complexes, notes Rosenberg, are partners in decision-making and some of them also promote various activities. "I consult with them. There are, for example, architects, residents of ours, who design spaces in the complex; there are others who are in the restaurant forum. There are also those who tell me that 'I didn't believe that at my age I would lead innovation projects in the house.' The residents lead, influence, they are part of our thinking. These things move me very much."

Within all this luxury, are there sometimes intrigues between residents? "Like in any residential building, there can also be intrigues, but I haven't encountered anything unusual. You see groups that connect together. Many friendships are formed between people. A lot of couples are also created with us. People are vital, happy, want to enjoy and also be in a relationship."