Sabra Health Care REIT Invests In Enlivant
Sabra Health Care REIT has entered into an agreement to invest in a 49% interest in a joint venture that will own 183 senior living properties operated by Enlivant with the remaining 51% held by TPG Real Estate, which currently owns 100%. They have valued the transaction at $1.62 billion, or $195,600 per unit, with Sabra’s equity investment coming to $371 million. In 2013, TPG bought the former Assisted Living Concepts (ALC) for $458.5 million, or about $58,000 per owned unit, when occupancy had dropped to 60% after the company decided to get out of the Medicaid business. TPG changed the name to Enlivant, partly because there had been a few too many scandals associated with the previous... Read More »
Is Brookdale Prepping For The Sale?
As you may know, we were never a fan of Brookdale Senior Living’s acquisition of Emeritus, and we are still not a fan of any company in the space operating 500 or more communities, let alone 1,000. It is just not that easy, and while we do not fault management for having a hard time of it, we do fault management for getting to the size it is. At least, the management responsible for the growth, and not the people trying to work things out. Brookdale announced its first quarter earnings, and investors seemed to like what they saw and heard. They ignoredthe same-community decline on occupancy of 100 basis points to 85.7% year over year, as well as the 80 basis point sequential decline. The... Read More »Enlivant lives on!
Enlivant, the Chicago-based owner/operator of assisted living communities, recently purchased a memory care community and an AL/MC community, both located in Georgia. Enlivant is the successor company to the former Assisted Living Concepts, which has been in the news of late when its former CEO Laurie Bebo’s case against the SEC was recently rejected by the Supreme Court. Back to the deal, the 42-unit memory care community (which has some high acuity units too) in Rome was built in 1999, while the community in Cedartown was built in 1991 with 29 AL units, plus 20 MC units added in 2014. Under its ownership by the seller, Winthrop Senior Living, the occupancy had varied over the years, but... Read More »Fraud And Senior Care
Despite some high-profile allegations against senior executives for some type of financial wrong-doing, we are still thankful for all the good work done by the nation’s caregivers. What is it about caring for the elderly and financial fraud or other misdeeds? About once a week I read about a home health agency being charged with Medicare fraud. And then there is Medicaid fraud we hear about all too often with nursing facility owners, doctors and other providers. In our senior care industry, the founder of Sunwest Management, Jon Harder, was sentenced last week to 15 years in federal prison. Also last week, the SEC charged Chris Brogdon, the CEO of Global Healthcare REIT, with... Read More »Schedule a demo
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