Thank You for 31 Wonderful Years
Happy Thanksgiving! First of all, I hope you all have a Happy Thanksgiving tomorrow. It is a great time to be with family and friends, and to be thankful for all that you have. As a company, we are entering our 70th year, which means we have been dedicated to the seniors housing and healthcare business for a very long time. You might think seniors housing didn’t exist 70 years ago, but it did, and the reality is, you would not recognize it, both physically and the quality of care. It was very different, which means you have come a long way. I want to thank you for sticking with us through all these years. I know you may not agree with me all the time, and I may have offended a few of you... Read More »
Aron Will Closes Two More Financings
Heading into the Thanksgiving holiday, Aron Will of CBRE certainly had a bountiful month, closing nearly $80 million in two transactions. First, working on behalf of joint venture partners Harrison Street Real Estate Capital and The Springs Living®, Mr. Will arranged a $66.4 million construction loan to fund the construction of a 216-unit senior living community in Lake Oswego, Oregon (Portland MSA). A pair of national banks provided the floating rate loan, which came with a four-year term and 48 months of interest only. Using a conservative loan-to-value for the project, that would result in a per-unit value most likely above $400,000. The property’s location in one of the most affluent... Read More »
Moving Forward In Moberly
An assisted living community in Moberly, Missouri is getting a fresh start, following its acquisition by a Pacific-Northwest operator with a growing presence in the Midwest. Originally built as an independent living community in 2005, the community struggled with census during the Great Recession. That prompted the owner, a regional operator, to convert a portion of the building to assisted living, and while census eventually stabilized (at 93%), the operating margin remained relatively low (at 16%). So, the decision was made to convert the entire building to assisted living. However, the regional operator’s investors were looking to exit the troublesome asset, and as the conversion... Read More »
National Healthcare Corporation Holding Its Own
With all the media attention on financial problems within the skilled nursing sector (and we are guilty of this as well), there are some companies which are doing okay in this environment. One is National HealthCare Corporation, a publicly traded company that keeps very quiet but, with a market cap of $989 million, is one of the largest public senior care companies. For the three months ended September 30, 2017, its average Medicare rate has increased by $6.00 to $459.63 year over year, while its Medicare patient days increased marginally. Meanwhile, it managed care average daily rate (which we assume to be mostly Medicare Advantage) remained flat while the total managed care patient days... Read More »
The Wolff Company Invests In Independent Living
At a time when most attention in the seniors housing development market has been directed at assisted living and memory care, The Wolff Company is betting big on independent living, with a pipeline of 20 properties planned to open in the next few years throughout the western United States. Since its founding in 1949, the company has mostly focused on the multifamily space, but to build up its seniors housing team, in March 2014 Wolff brought on Mike Milhaupt, who has over 20 years of experience developing senior living properties at First Centrum. Since welcoming Mr. Milhaupt, Wolff has broken ground on 11 IL developments throughout the West and has also purchased three senior apartment... Read More »
Cushman & Wakefield Arranges $45 Million Recapitalization
Cushman & Wakefield successfully recapitalized a 90-unit senior living community in downtown Watertown, Massachusetts (Boston MSA) in a transaction totaling $45 million. Rick Swartz, Jay Wagner, Jim Dooley and Caryn Donahue represented joint venture owners Washington Capital Management and LCB Senior Living, which is also the operator of the property. Developed in 2014 at an in-fill location in the Greater Boston area, the community features independent living, assisted living and memory care services. In addition to the many walkable amenities in the neighborhood, there is also a café, exercise room, barber/beauty salon, restaurant-style dining and an outdoor dining patio. So, for... Read More »
Good Samaritan Society Builds New South Dakota SNF
Construction has completed at a brand new skilled nursing facility in Rapid City, South Dakota, the state’s first new facility since the 1980s. Citing the fact that many patients have had to travel to the eastern part of the state for skilled nursing beds, the facility’s sponsor, The Good Samaritan Society, was able to advocate in 2015 the need for 30 additional beds to the South Dakota Department of Health. Expected to open on January 1, 2018, the facility will feature private rooms, therapeutic recreation programs and other specialized therapies. It is located on a Good Samaritan Society’s St. Martin Village campus in Rapid City, which includes independent living and assisted living... Read More »
AARP and Safe Nursing Homes
AARP, not usually a friend of the skilled nursing sector, thinks that nurses on duty 24/7 will solve the quality of care problems. In case you are not a member of AARP, like I am, the cover story in their November Bulletin was called, “How Safe Are Our Nursing Homes?” The story did an overview of the skilled nursing industry, including some of the recent rule changes. But it highlighted what didn’t change, such as not addressing the need for staffing increases. The article blamed staffing, or the shortage of staffing, for most of the woes confronting the skilled nursing sector. The solution? Mandate having at least one nurse on staff 27/7. Great idea, but 1) where are you going to find... Read More »
Quality Care Properties and HCR ManorCare One Step Closer
While the financial deterioration of HCR ManorCare continues, at least there was some good news in the past few weeks that may result in an agreement between it and its landlord, Quality Care Properties. Apparently, the DOJ has filed a notice to dismiss its case against HCRMC which was filed in April 2015 relating to alleged false claims for Medicare reimbursement. The consensus had been that HCRMC should just settle because the legal costs were high and it is often very hard to win against the government. But the ManorCare half of the company was well known back in the early 2000s for rarely settling liability claims from the drive-by trial attorneys, especially in Florida, so many of... Read More »
Blueprint Represents REIT in SNF Disposition
Steve Thomes of Blueprint Healthcare Real Estate Advisors represented a publicly traded REIT and its operating partner in its disposition of an 81-bed skilled nursing facility in Webster, Massachusetts (located about 10 miles south of Worcester on the Connecticut border). Several factors made this facility ripe for divestment. It was built in 1967 (although substantially renovated in 2015) and was just 77% occupied, with a 74% Medicaid census. On top of that, it was operating just below breakeven on approximately $5.65 million of revenues. An undisclosed buyer paid $2.025 million, or $25,000 per bed, so there is certainly some room for improvement. Read More »Schedule a demo
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