Cornerstone Healthcare Files For Bankruptcy Protection
Cornerstone Healthcare, an operator of skilled nursing facilities in the Pacific Northwest, filed for Chapter 11 bankruptcy protection. The CEO, Will Masterson, announced the reorganization in a statement filed with the U.S. Bankruptcy Court Western District of Washington that listed lender and lessor issues as the reason for it. Operations across the portfolio weren’t great leading up to the bankruptcy, but they certainly could have been worse. The portfolio includes 14 SNFs and one assisted living community in Washington, Oregon and Idaho, with total capacity of 1,508 beds. Occupancy was 78% based on that capacity. In the year to date through September 2019, the company generated more... Read More »
Recent Senior Care M&A Deals, Week Ending November 29, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Real estate investment companyMacArthur Hills & Prestonwood Court N/A Regional owner/operatorWyndmoor Hills N/A Sabra Health Care REIT/Cadence LivingSunshine... Read More »
Distressed CCRC Sells Near Philadelphia
A distressed rental CCRC in a Philadelphia suburb just (hopefully) secured a brighter future, changing hands to a new regional owner. Steve Thomes, Michael Segal and Dan Mahoney of Blueprint Healthcare Real Estate Advisors handled the sale on behalf of a court-appointed receiver. Sitting on a 12-acre campus in an affluent area, the community features 180 units. But that ideal location did not prevent the community from struggling operationally. However, once the receiver took full control, things started to improve. The buyer, which has both a local and regional presence, also has a strong capex plan currently being implemented that should help with the turnaround. We imagine that even... Read More »
Cushman & Wakefield Handles Dallas Sale
Richard Swartz, Jay Wagner, Jim Dooley and Chris Remeika of Cushman & Wakefield Senior Housing Capital Markets led the sale of two senior living communities in Irving and Plano, Texas (Dallas MSA), to a real estate investment company. No purchase price was disclosed. Totaling 265 units of independent living, assisted living and memory care, these communities feature plenty of amenities, include restaurant-style dining, bistros, covered patios, indoor pools, fitness centers, libraries, media rooms and game rooms. The Irving community was recently opened, but the Plano property, which offers just AL and MC, has been stabilized for the last 10 years. Going forward, subsidiaries of Senior... Read More »
Helios Refinances Struggling SNF
Unfortunately, we have seen this situation all-too often when a skilled nursing facility faces too much turnover among its senior administrative staff combined with increasing pressures from ACOs (Accountable Care Organizations), leading to operational underperformance. In those ACOs, even though they are often the low-cost care provider for post-acute patients, SNFs often feel the most reimbursement pressure, and they feel it in their operating margins. One regional operator with a 99-bed skilled nursing facility in San Bernardino County was facing these challenges plus the looming maturity of its first mortgage. So, they turned to Bill Janis and Mario Wilson of Helios Healthcare Capital... Read More »
Required Staffing Increases, Now?
This is no time for Congress to start penalizing skilled nursing facilities and raising staffing minimums. Are people in our nation’s capital really that out of touch with reality on the ground? Yes. Finding quality staff is hard enough in skilled nursing facilities, but then getting reimbursed to pay for them is even harder. So, my senator from Connecticut is a co-sponsor of the Quality Care for Nursing Home Residents Act. Now, who doesn’t want quality care for nursing home residents? I assume everyone, except those who would like to put the sector out of business. For your standard 120-bed nursing facility, the bill proposes having three RNs om duty at night, four during the... Read More »
Solving the Affordability and Aging Inventory Issues
Two growing problems in the senior care industry, aging inventory and a lack of middle-income/affordable seniors housing options, may actually be solved (at least, partially) with one initiative. That has been on the mind of Bill Pomeranz, Managing Director at Cain Brothers, who with the help of David Johnson, CEO of 4SightHealth, recently published his thoughts on converting aging senior living properties to affordable housing. Their main point is that the industry will have to be adaptable: adaptable to aging physical plants; adaptable to a large portion of the population that cannot comfortably afford what is being built now; adaptable providing more services and utility in a... Read More »
Sabra Health Care REIT Grows Its Southern California Portfolio
Sabra Health Care REIT has teamed up with Scottsdale, Arizona-based owner/operator Cadence Living to grow its senior living portfolio with the purchase of an assisted living/memory care community in Poway, California (San Diego MSA). Located adjacent to a 149-bed skilled nursing facility and near the Palomar Hospital, the community is spread out on 32 acres with seven separate buildings. It is unique in that it offers a horticultural-therapy program that grows more than 20,000 pounds of organic fruits and vegetables on several fields and greenhouses located throughout the property. There are of course many benefits to this program, from the obvious farm-to-table meals to providing excess... Read More »
OREC Securities Leads Cape Cod Sale
Late last month, we learned of Walker & Dunlop’s involvement in structuring acquisition financing for a senior care campus on Cape Cod. Now, it’s revealed that the OREC Securities team of Laca Wong-Hammond, Chad Elliott, Kevin Laidlaw and Aaron Becker led the sale on behalf of the seller. Located in the town of Brewster, Massachusetts, the property consists of a 135-bed skilled nursing facility built in 1995 and a 59-unit assisted living community that was added in 2007. Both were well occupied, but the owner/operator, Joshua Zuckerman, wanted to retire from the business. OREC, the investment banking affiliate of Lancaster Pollard, was originally brought on to sell the SNF and AL... Read More »
Evans Senior Investments Structures Sale of Brand-New Tampa Community
A publicly traded REIT picked up a brand-new senior living community in Tampa, Florida, and we mean brand-new. Opened just this summer, the community was developed by Lindell Investments Inc. and Solutions Advisors, whose affiliate Solvere Living was also the operator. Featuring 64 assisted living and 38 memory care units, its total development cost was estimated to be $27.5 million, or around $270,000 per unit. The census, although still in fill-up, is 100% private pay. Amenities include a bistro and bar, a fitness center, and a salon and spa. The REIT buyer paid $28.75 million, or $281,900 per unit, for the community and will bring in a regional operator to manage it. The first task,... Read More »Schedule a demo
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