Immigration and Labor
The seniors housing and care industry needs more low-skill immigrants, but is that really the best long-term solution? The New York Times ran a full-page story Monday on why a constant flow of low-skill immigrants is important for the seniors housing and care industry. Apparently, it is getting increasingly difficult to find locals to fill the growing need for caregivers. I have two conclusions about what’s going on. First, many immigrants come from countries where there is a different attitude towards the elderly, call it more respect and more compassion. That is why they often make excellent caregivers. On the flip side, I think there is more ageism in this country than people are... Read More »
Tellatin, Inc. Joins Integra Realty Resources
Tellatin, Inc. and its six offices with 16 professionals has joined Integra Realty Resources (IRR), significantly expanding IRR’s national coverage in the seniors housing and care appraisal and feasibility business. Coming on board as new shareholders of IRR include Jim Tellatin, MAI, Victor Cremeens, MAI, Bradley Schopp, MAI and Mark Tracy. The professionals at Tellatin have completed assignments on more than 6,000 nursing facilities, 3,300 assisted and independent living communities, and 200 hospitals in every state with a total value in excess of $75 billion. Founder Jim Tellatin authored the book, The Appraisal of Nursing Facilities, which has become the bible of skilled nursing... Read More »
Another Portfolio Deal From Blueprint
Blueprint Healthcare Real Estate Advisors didn’t have to go far to close its next portfolio deal. Michael Segal and Ben Firestone worked together out of the firm’s Chicago headquarters to sell three skilled nursing facilities in central Illinois. Totaling over 450 licensed beds, the portfolio was operating slightly above breakeven, with occupancy in the mid-80s. An experienced investor in the space and a Chicago-based operator teamed up to acquire and operate the portfolio, paying an undisclosed price. The deal follows Blueprint’s successful sale of three seniors housing properties in Utah to SmartStop Asset Management, arranged by Jacob Gehl, Amy Sitzman and Giancarlo Riso. It also comes... Read More »
HHC Finance Closes Illinois HUD Refinance
Housing & Healthcare Finance recently closed four HUD loans on behalf of a portfolio of four supportive living facilities in Illinois, totaling $55.3 million. Built in the early- to mid-2000s, the facilities will soon receive some renovations in order to increase their appeal and competitiveness, which the financing will facilitate. They total 536 units geared towards low-income residents that do not need full medical care. The transaction refinanced the experienced borrowers’ existing bank and partnership debt, along with supporting the renovations. Read More »
Merrill Commercial Real Estate Sells Nevada Memory Care
Tyler Merrill of Merrill Commercial Real Estate sold a 44-unit memory care community in Sparks, Nevada, representing a single-asset owner/operator in the disposition. This was the seller’s last seniors housing asset, as it was looking to focus on a less operations-intensive real estate class. However, it appears they are exiting at the right time, and at a good price. Mr. Merrill sold the community for $10 million, or $227,300 per unit. Built in 1996, it features 77 beds in 44 units, and was 86% occupied with a 100% private pay census. The seller had put $750,000 of capex into it in 2015, which almost certainly helped boost the price. A Northwest-based operator looking to expand their... Read More »
Pricing Age Into Seniors Housing Sales
It shouldn’t come as a surprise that in 2017, the oldest seniors housing properties (independent living and assisted living properties built before 2002) were valued the lowest and the newest properties (built after 2011) were valued the highest, according to the just-published 2018 Senior Care Acquisition Report. We see a similar correlation most years, but it is important to note that not all ages take into account renovations (and they would have to be substantial renovations and/or gut rehabs to change the effective age of the building) or additions (often of memory care units). However, it is generally true that in order to better compete in today’s senior living market, investors... Read More »
Bridge Lender Sells (And Finances) Philly-Area Community
The seller of a 54-unit assisted living/memory care community in the Philadelphia MSA got more than it originally bargained for, having been able to provide acquisition financing for the buyer too. Three years prior, a portfolio bridge lender had taken over ownership of the property through a foreclosure. It was built in stages in the 1980s and recently received substantial renovations. However, occupancy was around 60% at the time of the sale. The incoming owner, a private investor from the East Coast, plans to continue the renovations in order to align it with the other facilities in their portfolio. Andrew Hilding, Josh Jandris, Mark Myers and Charles Hilding of IPA Seniors Housing... Read More »
CBRE Completes Kennewick Recap
Switching around lending partners, a joint venture between Bourne Financial Group and Cascadia Senior Living recapitalized and refinanced their 138-unit assisted living/memory care property in Kennewick, Washington, with the help of CBRE’s Aron Will. The memory care portion was completed in 2015, with the assisted living finished in 2016, and since then, both acuities have quickly stabilized. The property is considered to be very high quality for the area and includes amenities like restaurant-style dining, cafes, putting greens, yoga and fitness studios, Wii bowling and movie theaters. To recapitalize the property, Mr. Will secured a $26.35 million loan, with a seven-year, fixed-rate term... Read More »
MedPAC Margin Myopia
Too much focus on Medicare margins results in MedPAC’s recommendations ignored every year. The Medicare Payment Advisory Commission (MedPAC) does a lot of worthwhile research as it relates to health care and Medicare. But the commissioners must get tired of banging their heads against the wall year after year when it comes to their recommendations to Congress for Medicare payments to SNFs. For years, they have believed Medicare payments to nursing facilities were too high, and every year recommend cuts or no increases. This year was no different. MedPAC recommended no increase in SNF payment rates for two years. This was partly because they believe Medicare margins are too high, and... Read More »
More Seniors Housing in Sarasota
Sarasota, Florida, is getting another seniors housing development, set to open in 2019. The resort-style community will feature 82 independent living, 56 assisted living and 34 memory care units, along with a host of amenities that include a variety of dining options, a clubroom with a fireplace, a spa and fitness center with an outdoor pool, a theater and massage/exam rooms for rotating wellness providers. Ryan Companies is developing the property, with Grand Living as the operator. The team of David Fasano, Sarah Anderson, Ryan Maconachy and Chad Lavender of Holliday Fenoglio Fowler worked on behalf of Ryan Companies to arrange a $16.7 million joint venture equity partnership with Eagle... Read More »Schedule a demo
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