•  Northwestern Mutual Divests California Community

    Northwestern Mutual has divested its 150-unit assisted living community in Brentwood, California with the help of Charles Bissell, Cody Tremper and Dean Ferris of JLL Capital Markets. Named Cortona Park, the community was built in 2007 with studio, one-bedroom and two-bedroom unit options averaging 761 square feet. Pets are welcome at the... Read More »
  • SLIB Handles Port Orange, Florida Sale

    Senior Living Investment Brokerage’s Bradley Clousing and Daniel Geraghty helped facilitate a private REIT’s exit of an operational outlier from a previous portfolio with the sale of a memory care community in Port Orange, Florida (Daytona Beach MSA). Consisting of over 54 units on a three-acre parcel, the high-quality community was well... Read More »
  • Jacaranda Trace Sale Arranged by Ziegler

    We have learned that Dan Revie and Don Husi of Ziegler represented the seller of Jacaranda Trace, an independent and assisted living community in Venice, Florida. Sarasota, Florida-based not-for-profit Convivial Life acquired the property, which was built in phases from 1999 to 2015 to now include 295 units on 33 acres with a plethora of... Read More »
  • Executives on the Move

    Greystone, a real estate lending, investment and advisory company based out of New York City, has appointed a new CEO, Hafize Gaye Erkan. A former executive at publicly traded First Republic Bank, she takes over this position after 18 years of experience in the banking sector. She has a distinguished background, holding a Ph.D. in Financial... Read More »
  • 60 Seconds with Steve Monroe: The Road to Recovery

    We are now halfway through 2022, and 15 months into the post-pandemic recovery. But with interest rates and inflation rising, there could be new headwinds to a full recovery. Speaking of full recovery, most of the talk has been about getting back to pre-pandemic levels of occupancy, NOI and NOI margin. That is certainly a first step. But there is... Read More »
60 Seconds with Swett: OHI Soars After Q1 Earnings 

60 Seconds with Swett: OHI Soars After Q1 Earnings 

Omega Healthcare Investors came out with its first quarter earnings on Monday May 2nd, and its share price soared throughout Tuesday, peaking at 28.89 per share (as of this filming), or up 14.8% from its previous close at $25.13. Granted, that is still not far off of its 52-week low of $24.81, but good news is good news.  First off, the company announced that it successfully sold 22 of its struggling Gulf Coast Health Care skilled nursing facilities, representing the majority of that portfolio for $318 million in cash. Gulf Coast had stopped paying contractual rent in the second quarter of 2021 as it was in the process of filing for chapter 11, so getting these facilities off its plate... Read More »
60 Seconds with Swett: REITs and the Post-Pandemic M&A Strategy 

60 Seconds with Swett: REITs and the Post-Pandemic M&A Strategy 

Coming out of the pandemic, the senior care REITs have had their difficulties dealing with low occupancy, operator/tenant problems and staffing shortages, like most in the industry. Rent collection rates and lease coverages have been less than ideal in more than a few cases, a couple of high-profile disputes played out, and REITs even were the target (albeit misguided) of the Biden Administration’s critique of the skilled nursing industry. However, after the major balance sheet decisions they made early in the pandemic and some strategic divestments, many REITs are still poised to grow on a massive scale, if the right deals come along.   What properties are they targeting, and... Read More »
60 Seconds with Steve Monroe: Uncontrolled Spread: Why Covid-19 Crushed Us

60 Seconds with Steve Monroe: Uncontrolled Spread: Why Covid-19 Crushed Us

If there is one book you should read to really understand what happened with the COVID-19 pandemic, it is former FDA Commissioner Scott Gottlieb’s excellent book on this topic, called Uncontrolled Spread. I just finished it, and while dense in some parts on the scientific aspects, it does a lot to explain, and expose, why so much went wrong in our healthcare system, and why nursing homes should not necessarily get the blame that has been heaped on them. This is important because the lawsuits are starting to pile up, and the blame game is going to get intense, with the federal government not helping matters.  The reality is that no on really knew anything about this new coronavirus,... Read More »
60 Seconds with Swett: Can SNFs Survive the Medicare Cut? 

60 Seconds with Swett: Can SNFs Survive the Medicare Cut? 

The dreaded day has come. On April 11th, CMS issued a proposed rule to update its Medicare payment policies and rates which would lower Medicare Part A payments to SNFs by approximately $320 million in FY 2023 compared with FY 2022. This is all the result of CMS’ October 1, 2019 rule change called the Patient Driven Payment Model, or PDPM.   In a nutshell, the case mix classification model was supposed to more accurately compensate SNFs for the high-acuity, medically complex patients they already cared for. However, it was also supposed to be budget neutral, which it was not. CMS estimated there was an unintended increase in payments of about 5%, or $1.7 billion in FY 2020. The... Read More »
NHI and Welltower Enter Settlement Agreement

NHI and Welltower Enter Settlement Agreement

Well, it’s finally done. Welltower and National Health Investors entered into a settlement agreement over the unpaid rent from 17 legacy Holiday Retirement properties that Welltower had not made contractual rental payments on since its August 2021 takeover of the portfolio. It is still baffling why the issue ever arose, especially since Welltower had contractual obligations to the landlord, NHI. But we are glad they can put this matter behind them, although we will see how much the two parties will work with each other going forward. Regardless, NHI held firm, was in the right, and won. The settlement agreement included a payment of $6.9 million, which is expected to be recognized in the... Read More »
60 Seconds with Swett: Managed Care Continues To Eye Home Health

60 Seconds with Swett: Managed Care Continues To Eye Home Health

We don’t need to tell you that the pandemic enabled healthcare to be delivered in the home at historic rates, as patients could see doctors on Zoom, medications could be delivered, and home health aides could provide other care and services. Anything to avoid the dreaded hospital or nursing home while COVID was raging. Coming back from the Spring NIC in Dallas, where we saw abundant optimism (and some caution from a few of you), one may not think this will be a huge threat. But UnitedHealth Group’s potential acquisition of home health provider LHC Group for a reported $5.4 billion reminds us that the penetration rate for in-facility senior care services is always on the verge of falling.... Read More »