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 »
KeyBank Finances Luxury Independent Living Development
A new independent living community is going up on the Princeton University Healthcare campus, with the help of construction financing arranged by Grant Saunders, Peter Trazzera and Jake Hollinger of KeyBank Real Estate Capital’s Healthcare Group. Featuring 260 total units, including 15 studios, 145 one-bedrooms and 100 two-bedrooms, the project is being developed by SBLP Senior Living Fund I, a fund that invests in the development of seniors housing projects. A joint venture between South Bay Partners, a Dallas-based seniors housing developer, and LAMB Properties, a real estate investment vehicle owned by the Bluhm family, sponsors the fund. Upon completion, Sage Senior Living will take... Read More »
Legacy Tenant Capital Structures Create REIT Turmoil
It all started when HCP, Inc. completed a series of rent negotiations with HCR ManorCare, but to no avail. It just wasn’t enough for a long-term solution, and they ended up spinning the HCRMC portfolio into a new entity (Quality Care Properties) that was supposed to be a REIT but may end up not being one depending on the final solution. Even after those lowered rents, HCRMC defaulted on some payments to QCP, and it got messier after that. As everyone now knows, that was the tip of the iceberg. Practically every major REIT has reported “issues” with tenants, ranging from covenants broken, inability to make rent payments, and high likelihood of not being able to make rent payments in the... Read More »
Another Financing For Next Healthcare Group
HJ Sims showed its range of services in recapitalizing two skilled nursing facilities in Florida on behalf of a private healthcare real estate investment firm, Next Healthcare Group (NHG). Sims’ involvement with the facilities goes back to 2013, when it provided a $3.4 million HUD Plus™ subordinate loan to a related company of NHG, HBS Assets, to finance the acquisition of the two facilities located in Lake City and Bushnell, Florida. Built in the 1990s, which was relatively new for other northern Florida SNFs, the facilities were well occupied (at 92%) at the time of the sale with a high 40% Medicare census and 17% operating margin. HBS Assets had paid $20.86 million, or $139,100 per bed,... Read More »Schedule a demo
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