Will Brookdale Be Back In Play?
With agreements nailed down with its major REITs, buyers may start sniffing around again at a leaner and more profitable Brookdale. The announcement last week during the ASHA mid-year meeting, that Brookdale Senior Living had come to several agreements with Welltower on their various leases, was met with relief and renewed optimism for the seniors housing sector. Last Friday we reported on the details of the agreements, but most people we spoke with were hoping that as Brookdale’s financial pressures ease, the negative sentiment it had created for the industry will also start to dissipate. In addition, with the change-of-control roadblocks by the Big Three REITs now gone, always used as an... Read More »
Is Apollo Global Management Entering Our Space, Again?
After a disastrous outing 20 years ago, Apollo may see better opportunities this time around. The rumors are swirling that private equity giant Apollo Global Management is putting its toe back in our market after a long absence. The rumor is that Apollo is buying 22 senior living communities from HCP, Inc. that are operated by Brookdale Senior Living. HCP previously disclosed that it is under contract to sell the portfolio for $428 million, or about $154,000 per unit, but never disclosed the buyer. Either Apollo is getting a deal, or these are older properties not performing too well, based on the relatively low price point. The last time we recall Apollo making a major investment in the... Read More »
Lenders and Investors Need To See
With so much capital flooding the senior care space, lenders and investors need a better appreciation of what it is they are funding. People like to say that the seniors housing and care industry is driven by demographics, but for the past few years it has been driven by cheap and abundant capital. But to buy it or build it “because I can,” while maybe rational in the moment, does not make long-term sense and usually leads to future problems. So here is my recommendation. For every new lender or investor you have, ask them to do an 8-hour shift in one of your buildings, and I mean doing the dirty work, not just shadowing an employee. First of all, they will have a new appreciation for how... Read More »
Innovation and Seniors Housing
Everyone talks about the disruption factor coming to seniors housing, but nobody knows what it is. Can we innovate before it comes? So, I have been attending the Senior Living Innovation Forum this week, a “smallish,” invite only conference with about 250 attendees. The point of it is to bring in industry insiders and some outsiders to get into the down and dirty about the future of seniors housing in this country. My session, with four top CEOs on the panel, will be taking a deep dive into the future, where they think the industry will be in 2030, what a potential disruptor could be and whether it will come from outside the industry or inside. Will the disruption be service oriented or... Read More »
The CCRC Market
CCRCs are thriving in today’s market when so many other providers are struggling for census. But why? How many times have you heard that the CCRC market is a thing of the past? About as many times as you have heard that skilled nursing is dead? Well, I’ve got some news for you, neither is dead and they aren’t going anywhere. While so many providers are struggling with today’s occupancy or reimbursement issues, CCRCs are actually outperforming the entire senior housing and care sector, at least when it comes to occupancy. In addition, values in the CCRC acquisition market have been on an upward trend for the past four years. But what has changed since the Great Recession when people... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
