60 Seconds with Swett: The Current Lending Environment for Senior Care Properties Q&A
The higher cost and scarcity of capital has made getting just about any deal done that much more difficult, from an M&A transaction to a refinancing to a new construction project. We know that we don’t need to tell most of you that. But we also know that right now is a great time to buy, that it may be the time to commence construction, and that those with maturing debt are sometimes faced with a difficult decision: refinance or exit. So, we have convened a panel of financing experts to lay out the lending landscape and provide answers to those seniors housing and care owners on how to get deals done today, from which sources, and at what terms. But also, what financing options make... Read More »
60 Seconds with Steve Monroe: REITs and PE Will Be Attacked Again
The Chapter 11 filing by Steward Health Care was not a surprise to anyone in the healthcare world. Its former PE owner, Cerberus Capital, will be attacked because they made a significant profit when they finally exited their 2010 investment 10 years later. No one wants to remember that they bought six failing hospitals in Massachusetts and rejuvenated them. Without that purchase, there was a good chance they would have been shuttered. Medical Properties Trust will be attacked because its leases ended up being too expensive, even though it helped Steward grow, took an equity interest in the company and provided new capital. Everything seemed to be going swimmingly, and then COVID hit, and... Read More »
60 Seconds with Swett: The Development Dilemma
The difficult thing about development right now is that it is both a very tough time to build because of higher capital costs but also may be the time that many developers and investors need to start projects. We know, easy for us to say, especially as the Fed signals that rates are likely to stay high for longer and as the 10-year Treasury rate peaks above 4.5% again. But the reality is that if indeed there will be a supply and demand imbalance in a couple of years, then the predevelopment work (if not shovels in the ground) has to start right now because of how long it would take to get those developments open and leased up by the time baby boomers begin turning 80. That process takes a... Read More »
60 Seconds with Swett: CMS Raises the Minimum Staffing Mandate
On Monday, CMS came out with its final minimum staffing standards for nursing homes, but the eventual outcome is anything but final. Despite the outcry from nursing home providers from the previous proposed mandate of three hours per resident per day, asking simple questions like how can we pay for this and where will this newly needed staff come from, CMS has now raised the minimum to 3.48 hours per resident day, which includes .55 hours for an RN and 2.45 hours that can be fulfilled by a nurse aid, now including LPNs, which were excluded from the prior version of the rule. It will also require facilities to have a registered nurse onsite 24/7. The rule will be implemented gradually over... Read More »
60 Seconds with Swett: The Battle of the Brokers
This Thursday, April 18th at 1pm ET, The SeniorCare Investor will be hosting its first ever Quarterly Investor Call, a virtual event available to our readers that will bring together the latest M&A and valuation data from our platform LevinPro LTC, relevant deal case studies and a robust Q&A period with our audience. Editor-at-large Steve Monroe and I will be joined by three active brokers, Ryan Maconachy of Newmark, Matt Alley of SLIB and Alex Florea of Blueprint, to discuss the current dealmaking environment, everything from the transaction process to buyer and seller dynamics, to pricing and, of course, to financing all sorts of deals. So, if you are thinking about buying,... Read More »Schedule a demo
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