Skilled Nursing Price Drops
When the average price per bed for skilled nursing facilities drops, the consistency in that drop is unparalleled. Here is something to ponder. We know that after a nice five-year run-up, the average price paid per bed in the skilled nursing market dropped by 18% last year, according to our new statistics. That was obviously a significant plunge, especially since the average had doubled in the previous five years. So, I decided to go back and see what happened in other years since 2000 when there was a drop. It turns out there were four years when there was a price drop of any significance. These included 2003, 2008, 2011 and 2017. What is weird is that the decline in each of those four... Read More »
Bad Flu Season, But That’s Not The Story
It is a horrific flu season, but it may be unfairly blamed for current seniors housing woes. So, we have all been hearing about this horrible flu season, especially with the unusual number of children’s deaths, including in my home town. But what I fear is that it will be blamed for more than its fair share of census problems in the senior care market. Granted, when the worst flu season in nearly a decade hits, it is bound to impact senior care communities, where the residents are much more frail than the population as a whole. But for some reason, this flu season is impacting seniors housing communities, and companies, in very different ways. Believe it or not, some have seen little to no... Read More »
Assisted Living Prices Hit Record
Despite multiple headwinds, assisted living prices hit record levels in 2017, while skilled nursing facility prices slumped for the first time in six years. There is an interesting phenomenon going on right now in the seniors housing and care acquisition market. Both the skilled nursing sector and the private pay seniors housing side of the business are facing multiple headwinds. Yet, one side is seeing prices decline while the other keeps on going up, setting some new records on the way. Last year, after five straight years of rising prices, the average price per bed for skilled nursing facilities plunged by 18% to $81,350. Your first question might be, what took so long? The average cap... Read More »
Capital, Capital Everywhere
After attending two conferences focusing on two different healthcare real estate sectors, it is all about capital. Having just returned from two different conferences in Florida, the one conclusion I can draw from both of them is that there still is way too much capital looking for yield. One, the Revista-sponsored medical real estate conference, was mostly focused on the medical office building market, which transacted more than $13 billion in investments last year. Who would have thought? The other was the American Seniors Housing Association’s annual meeting, which had record attendance with a lot of “deal talk” going on. One industry veteran told me he was only talking to architects... Read More »
Elmcroft Senior Living Portfolio Completes Transition
Ventas has officially transitioned management of its Elmcroft portfolio to newly-formed Eclipse Senior Living. It is now official. The operations of the Elmcroft Senior Living portfolio of 76 properties, with the real estate owned by Ventas, has officially been transferred to Kai Hsiao’s new company, Eclipse Senior Living. Ventas has acquitted a 34% interest in Eclipse, with the remaining 64% being held by Eclipse management, which now includes Shamim Wu, Kai’s former colleague at Holiday Retirement Corporation. She recently did a 10-month stint as president and COO of Silverado. This will be an interesting test, since the Elmcroft portfolio was obviously having some financial problems... Read More »Schedule a demo
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