• Genesis HealthCare’s Legacy Liabilities Lead to Bankruptcy Filing

    Genesis HealthCare has filed for Chapter 11 bankruptcy protection, listing its 298 affiliated holding companies, ancillary businesses and insurance vehicles in its submission to the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division. It is one of the largest skilled nursing operators in the country and operates 218... Read More »
  • Cindat Capital Management Invests in Colorado Community

    Cindat Capital Management, a middle-market real estate private equity platform focused on seniors housing and opportunistic investments, announced its first investment from its Senior Housing Credit Platform. It was a unitranche debt investment in The Pearl at Boulder Creak, a 116-unit, Class-A independent living and assisted living community... Read More »
  • MedCore Divests to Publicly Traded Healthcare REIT

    Ziegler announced its role as exclusive sell-side financial advisor to MedCore on the sale of Parkview on Hollybrook, a 189-unit rental CCRC in Longview, Texas. The property has been on a long road to stabilization. It was originally bought in a bankruptcy auction in 2016 for $20.7 million by Thrive FP when it was in the middle of development. 12... Read More »
  • Forbright Bank’s H1 Activity

    Forbright Bank reported its activity for the first half of the year from its healthcare and HUD lending teams, announcing more than $500 million in loans closed for acquisitions, recapitalizations, working capital, and HUD financings for healthcare providers across the country. One of the largest transactions was a $60 million revolving loan to... Read More »
  • Large SNF Portfolio Secures Financing

    MONTICELLOAM, LLC announced the closing of $218.3 million in combined bridge, mezzanine, and working capital financing for 18 skilled nursing facilities across Kentucky. The transaction includes a $179.3 million senior bridge loan and a $29 million mezzanine loan, which the sponsor plans to use to restructure and upsize the existing debt on the... Read More »
Celebrating 30 Years

Celebrating 30 Years

The American Seniors Housing Association has been supporting the senior living industry for 30 years now, with David Schless at the helm throughout. I fondly remember going to my first annual meeting of the American Seniors Housing Association, back when it was part of the National Multifamily Housing Council. Let’s just say it was quite smaller than it is today, and I have to say, a bit more intimate. If you attended one of those early meetings, you may remember my question to Murry Gunty of Lazard Freres, when in the 1990s he was in the middle of patching together a company that seemed very disorganized, as I outlined his various, unconnected acquisitions. I asked, “So Murry, what’s the... Read More »
Celebrating 30 Years

Can Skilled Nursing Be Reformed?

The American Health Care Association and Leading Age have proposed a reform agenda for skilled nursing. As usual, the problem is Medicaid. The American Health Care Association and Leading Age have proposed a policy “agenda” to address some of the problems that exist in skilled nursing facilities today, which were obviously highlighted by the impact of the pandemic.  As part of the reforms, they want enhanced infection control practices, 24-hour RNs, 30-day minimum supply of PPE, better recruiting and retention of staff, improved oversight systems, and a shift to all private rooms. There is little here to disagree with, except that they expect Medicaid to pick up most of the $15... Read More »
Celebrating 30 Years

Financial Relief For Seniors Housing

Federal financial relief may be coming to assisted living and memory care providers, but will it be enough? The folks at ASHA, Argentum and NCAL have been working overtime to obtain some federal financial relief for their private pay members to deal with the burdens associated with COVID-19.  It’s supposed to be coming soon, but will it be enough? For now, the formula will be based on how it worked for Medicaid providers, which is 2% of 2019 revenues. For an 80-unit assisted living/memory care community with an average $5,000 monthly rate, that might come in at close to $80,000. If you have 50 communities, that is $4 million. Now we’re talking. For a more modest community with 50 units in... Read More »
Celebrating 30 Years

ASHA and Stifel Nicolaus Meetings

What we heard about industry trends 3,000 miles from home. After spending three days at the American Seniors Housing Association meeting and the Stifel Nicolaus “2020 Seniors Housing & Healthcare Real Estate Conference, other than jet lag, there were a few takeaways. First off, on a few panels stand-alone memory care communities came up, and not in a good way. Because they tend to be small, a few resident deaths can have an outsized impact, the former over-development has still left a bad taste, and stand-alone anything is viewed by many as too risky. Speakers believed cap rates were at least 100 basis points higher than for assisted living.  One thing we did hear is that... Read More »

Being Large In Seniors Housing

Size isn’t all its cracked up to be, and it does matter whether you own or operate the real estate. We always hear that size matters, but it can also work against you. While no one has claimed to be able to define the optimal size of a seniors housing company, I have yet to hear anyway say that they would be comfortable running a company with more than 500 properties. Most would say that 250 would be tops, with many of them even much smaller. I am talking about owning and operating, with the emphasis on operating. For REITs, I don’t know if there is a real number where their efficiencies get maxed out. They are not hiring the staff and serving the food. And they are not trying to... Read More »