Magazine article Behavioral Healthcare Executive

Atlanta Mom Creates Residential Mental Health Neighborhood: The Cottages on Mountain Creek Offers Residential Treatment in a Cluster of Suburban Homes

Magazine article Behavioral Healthcare Executive

Atlanta Mom Creates Residential Mental Health Neighborhood: The Cottages on Mountain Creek Offers Residential Treatment in a Cluster of Suburban Homes

Article excerpt

As she sought a group home placement or her mentally ill, young adult daughter, commercial real-estate professional Carol Reynolds, president of Province Valuation Group (Sandy Springs, Ga.) and a local NAMI member, found a lot that she didn't like about these homes. She found that the surroundings were "very stark" and noted that due to the financial circumstances of many mentally ill residents, many of the homes were located in troubled or undesirable neighborhoods. Yet, even then there appeared to be a "huge need" and demand for residential treatment options due to the closure of psychiatric hospital units in the region.

After 20-plus years specializing in appraisals for acute-care, senior-care, and long-term residential facilities, Reynolds was reluctant to place her daughter into a facility she did not like. So, she decided to put her skills to work to create a new, residential mental health treatment setting.

It all started when she looked at a home across the street from her business, Province Valuation Group, which was located in a former single family home--one of 14 mature, mostly rental properties on a quiet mixed business/residential street. Working with an associate, who also owned a home in the neighborhood of mature residences, Reynolds acquired a third property.

"I decided to present three houses for rezoning," she said. Her goal was to rezone the properties--all of which were originally single family homes--from office and institutional use to a new use: assisted living for mentally ill or developmentally disabled individuals.

A logical presentation

Because she specializes in the valuation and market analysis of acute care, senior care, and assisted living properties, Reynolds was well prepared for the challenge and controversy involved in launching a residential mental health treatment center--what was to become The Cottages On Mountain Creek--in a neighborhood setting.


Some of The Cottages' neighbors were upset by the prospect of a small mental health treatment community opening within their neighborhood. Some expressed concern to local officials, notably during the zoning process, that The Cottages might drive down property values or scare residential rental customers away. But once again, Reynolds' experience in valuing, siting, and developing medical and assisted-living properties served her well as she was able to show added real estate value for the neighborhood. "I know the business, so I was able to present the need in a logical way, maintain support for the project, and see it through."

The financial challenge was also expected, she explains. "Bankers kept saying, 'What is your demand? Where is your market data?" Because she didn't have any demand or pricing data for residential mental health businesses, Reynolds had to finance project costs herself--a challenging, but not insurmountable problem for an experienced businesswoman like her. But to satisfy future questions--and prove the worth of her investment--Reynolds worked with a market research firm to develop a national mental health housing survey and, with the help of the local NAMI chapter and the publisher of SZ (Schizophrenia) Magazine, launched it. She expects to have definitive survey data soon that will help her to identify national and regional service needs, pricing points, and other key information.

Launch with three types of services

After the success of her rezoning effort, Reynolds, now CEO of the new organization, acquired three more neighborhood homes, "got an assisted living license, made renovations, and decided to become Joint Commission accredited. …

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