People on the Move, October 2018
After four years of investing in seniors housing communities with Silverstone Health Care Real Estate, an investment platform she co-founded which produced equity returns over of 250%, Stephanie Anderson is now a national sales director with Housing & Healthcare Finance, based in the Boston area. Before Silverstone she was with Health Care REIT, GE Healthcare Finance and Ventas, all of which provided a great background for her new position….Walker & Dunlop has hired Michael Davis as senior vice president in its FHA finance group, who will be working on HUD, Fannie Mae and Freddie Mac loans for W&D’s seniors housing and care clients. Justin Hill has joined JLL Capital Markets as... Read More »
Near-Record Third Quarter M&A Volume
Heavy demand continues for properties across the seniors housing and care spectrum. I know I have been a little negative on the market in the past year or so, given all the problems we have seen and written about, not to mention peak pricing a year ago. I am not sure how to take it, but I guess people have not been listening. The acquisition activity continues unabated, with back to back quarters with more than 100 announced acquisitions each. This is a very strong market with heavy demand across the seniors housing and care spectrum. With 102 deals in the third quarter, we have now posted 293 transactions through September 30. That puts us on track for a record year, beating out 2015 as... Read More »
Is the SNF Market Bottoming Out?
On September 27, our Editor Steve Monroe and a panel of experts that included Ryan Chase of Blueprint Healthcare Real Estate Advisors, Eli Kutner of Harborview Capital Partners and Stefan Oh of American Healthcare Investors, debated an important question: is the skilled nursing market approaching a bottom? And if it is, how do we value those facilities considering Medicare Advantage plans are shortening lengths of stay, Medicaid reimbursement dollars are getting squeezed and SNF censuses across the country are steadily declining? After hitting a peak of nearly $100,000 per bed in 2016, SNF values have dropped off about 20%. But demand is still high, and new buyers (big buyers) are hitting... Read More »
Pricing SNFs After A Market Peak
Average skilled nursing values have dropped by 20% since the market peak in 2016, and by this time next year we will have a new Medicare reimbursement protocol. How will that figure into valuing skilled nursing facilities today? Is the skilled nursing market approaching a bottom? We know when it peaked in terms of acquisition values, and that was in 2016 at $99,000 per bed. But pricing has dropped by 20% since then, despite continued strong demand for nursing facilities. Now, after a few years of Medicare Advantage plans squeezing cash flow by cutting rates and shortening lengths of stay, a new reimbursement system will become effective a year from now. While the industry has responded... Read More »
Atrium Health Suffers
The New Jersey-based skilled nursing and assisted living operator puts 33 of its properties into receivership. Not good for the lenders. I am sure you have heard by now about Atrium Health and Senior Living placing 33 of its properties into receivership this week. This includes all their Wisconsin properties and one Michigan facility, but appears to leave out its 12 buildings in New Jersey. Atrium operates both skilled nursing and assisted living, and only nine assisted living communities in Wisconsin were placed in receivership; the remainder were SNFs. The receiver has hired Health Dimensions Consulting to operate them during the receivership until it is decided whether to split them up... Read More »Schedule a demo
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