Diversified Healthcare Trust Provides SHOP Update
With its upcoming August 30th shareholder vote on its merger with Office Properties Income Trust, Diversified Healthcare Trust provided some discouraging news on its seniors housing portfolio. It is almost as if they wanted to have bad news, since the dissident shareholders have been touting the recovery of DHC’s SHOP portfolio as one of many reasons to reject the proposed merger as undervaluing DHC. The reason why we say that they seemed to want to share bad news is that they keep on comparing results with 2019 performance, as in July occupancy was 750 basis points below July 2019. Yes, we all know that most operators have not fully recovered from pre-pandemic census levels, but is it... Read More »
SLIB Arranges New Mexico Deal
Senior Living Investment Brokerage helped a mom & pop retire from the senior care industry with the sale of two assisted living communities in Albuquerque, New Mexico. Built in 1972 and 1982, with renovations in 2011 and 2015, respectively, the communities were on the smaller side. An owner/operator expanding its presence in the western United States emerged as the buyer, making its first acquisition in New Mexico. Vince Viverito and Matthew Alley of Senior Living Investment Brokerage handled the transaction. Read More »
Foundry Commercial Adds 16 New Managed Communities
Foundry Commercial continues to expand its seniors housing portfolio, recently adding 16 new seniors housing communities to be managed by Spring Arbor, its in-house operating platform. With the new contracts, Spring Arbor now manages 40 communities in 10 states across the Mid-Atlantic, Southeast and Midwest. In addition to North Carolina, Virginia, and Maryland, where Spring Arbor was already operating, Foundry now has a management presence in South Carolina, Florida, Tennessee, Kansas, Nebraska, Iowa, and Minnesota. Also with these added communities, Foundry and its affiliated joint venture operating partner, Cascadia Senior Living, now operate 54 communities in 12 states. Four... Read More »
Gardant Management Solutions Grows By 45%
Gardant Management Solutions has just taken over management of 25 assisted living communities in Illinois (22) and Ohio (3) with nearly 1,375 units. With this addition, Gardant’s size will increase by about 45%, something that will not be too easy to transition in the current operating environment. The company will now operate more than 80 communities with nearly 7,200 units. Prior to this new management contract, Gardant’s average community size was 106 units. Now it is closer to 90 units since the new 25-community portfolio averages about 55 units each. The Bourbonnais, Illinois-based company focuses on affordable assisted living, and many of these 25 communities were designed to... Read More »
Civitas Developing New Active Adult Community
Civitas Capital Group, a Dallas-based alternative investment manager focused on U.S. real estate, announced it has closed on a new development project to expand its presence in the seniors housing space. Terraces at Tree Farm will be developed lake-side in Basalat, Colorado, within the economic hub of Roaring Fork Valley. It will be a Class-A, 72-unit active adult community surrounded by shops, restaurants, trails, offices, condos, apartments and a hotel. The development of this community qualifies as a rural project, or a Targeted Employment Area project (TEA), which allows for EB-5 investors to obtain access to set-aside visas and priority processing under the EB-5 Reform and... Read More »
Lisa McCracken Joins NIC
Lisa McCracken will be taking her research and analytics expertise to the National Investment Center for Seniors Housing & Care (NIC) effective October 1. She will be the head of research and analytics for NIC. She had a similar job at the investment banking firm Ziegler, where she was director of senior living research and development for the past six years, and SVP for the four years prior. Earlier this summer Beth Mace “retired” as NIC’s chief economist and director of research and analytics, and while no one can fill her shoes, it looks like Lisa will take over the research side of things while Beth slows down and tries to ease into retirement working part time for NIC with her... Read More »
60 Seconds with Monroe: SNFs and Medicare Advantage
As you all know by now, I have been enrolled in traditional, fee-for-service Medicare for nearly four years, while all my friends but one have enrolled in Medicare Advantage (MA) plans. Why? Because that is all they see advertised. Some did not even know there was an alternative. Skilled nursing operators have known for a decade or more that MA plans are stingy when it comes to payments, now up to $100 lower per patient day compared to traditional Medicare. It is now coming out that MA plans are not just stingy on what they pay providers, they are also stiffing their members as to what they will pay for, and how often. And this is affecting patient care in the post-acute setting, according... Read More »
The REIT/Operator Shuffle Continues
Ventas just announced that it was changing out the management of 26 independent living communities that had been managed by “Holiday by Atria.” Sodalis Senior Living will be taking over 13 communities in Texas, Priority Life Care eight in Florida, and Discovery Senior Living five in California. All three companies are already successfully managing properties on behalf of Ventas. The new managers will take over on or around September 1 for the majority of the communities, with the balance early in the fourth quarter. What we know is that Priority Life Care took over a portfolio of the former Eclipse managed properties and performed better than expected, or at least what Ventas may have... Read More »
Diversified Healthcare Trust/Office Properties Trust Deal in Jeopardy
Last April 11, Diversified Healthcare Trust announced a merger (sale) with Office Properties Income Trust whereby DHC shareholders would receive $1.70 in OPI shares for each DHC share, then worth about $1.20 per share. Within weeks the shares plunged by 33% to $0.80 per share. They had been as low as $0.61 per share on December 22, 2022. We suppose management must have been desperate. Something didn’t smell right to a few investors, and shareholder Flat Footed LLC raised the red flag that this was not a deal in the best interests of DHC shareholders. And they fought it. They were not the only ones who decided the merger was not in the best interests of DHC shareholders. Now, three leading... Read More »
Blueprint Handles Florida Panhandle Deal
A public REIT decided to divest the only Florida location in its operating partner’s portfolio. Built in 2008, so relatively new for a skilled nursing facility, St. James Health and Rehabilitation Center features 90 beds comprising nearly all semi-private rooms. It is the only facility in Carrabelle, Florida (on the Panhandle), with the next nearest competitor located more than 30 miles away from it. The facility also received referrals from the Tallahassee market. However, the operator wished to focus on its core geographic concentration in the Midwest and Mid-Atlantic regions. So, Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors confidentially targeted... Read More »Schedule a demo
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