Seniors Housing Weekly Update – Another Holiday Sale For Fortress
June 23, 2015. 60 Seconds with Steve Monroe. New Senior Investment Group pays $640 million for 28 Holiday Retirement Communities… It has been eight years since Fortress Investment Group closed on its acquisition of Holiday Retirement Corporation for $6.6 billion, or $188,500 per unit. It saw occupancy drop from around 90% to well below 80% in less than three years. There was high turnover among the staff. There were some debt extensions to give it more time. Did we mention the Great Recession hit a year after closing the deal? A lot can happen in eight years, including continued low interest rates which help keep valuations up. This week, they announced another portfolio sale, this... Read More »Show me the money
There is probably no better measure of a seniors housing property’s quality than how much it pulls in per unit. When it comes down to it, amenities are nice, modern features are important, but cash is king. As acuity is rising in the seniors housing market, communities are taking in more cash per unit (even if the margin may be declining). And a newer, high-quality property can obviously charge more in rent than a 40-year old property. Both of these factors led to a significant rise in the average NOI per unit in 2014 (according to the Senior Care Acquisition Report), going from $12,000 in 2013 to $14,300 per unit in 2014 for assisted/independent living, a 19% increase. That is also higher... Read More »Seniors Housing Weekly Update – CCRCs And Employment Growth
June 16, 2015. 60 Seconds with Steve Monroe. Everyone reported that CCRCs are going to have explosive job growth in the next five years, but are they missing the boat? CCRCs And Employment Growth As you have probably figured out by now, I like numbers and statistics, but too often, people report on numbers that are released by others without stepping back and asking if they make sense. One such number received some press recently. CareerBuilder came out with various industries that were expected to have the highest rate of job growth in the next five years. Surprisingly, CCRCs came in eighth place, with an estimated growth of nearly 94,000 jobs between now and 2019, for an increase of 21%.... Read More »What’s the memory care premium?
What is the premium paid for memory care in today’s seniors housing acquisition market? We have noticed in the last two cycles that at the beginning of the bull markets, traditional assisted living is typically priced higher than communities with a memory care component, then the reverse is true as the bull market strengthens or hits its peak. And given the extraordinarily high values we saw in 2014, we may have already been to the mountaintop. Accordingly, buyers paid a significant premium for assisted living with a memory care component, with $215,100 per unit compared with $138,500 for traditional AL in 2014 (according to the 2015 Senior Care Acquisition Report). What is interesting is... Read More »Seniors Housing Weekly Update- Are LTACs Gaming The System?
June 9, 2015. 60 Seconds with Steve Monroe. A new study appeared that seems to indicate patient discharges are influenced by the timing of Medicare reimbursement… Yesterday, The Wall Street Journal came out with a story on how it appears that patient discharges at long-term acute care hospitals (LTACs) have been timed to reimbursement payments. Specifically, to maximize those payments. The story was based on a study that appeared in the journal Health Affairs and had been reported on previously. Apparently, what the authors of the study noticed is that when the reimbursement methodology changed, between 2005 and 2010 for full implementation, there was a significant spike in the... Read More »Schedule a demo
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