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 » REITs Having Trouble With Seniors Housing
We have heard more about REITs and their skilled nursing troubles, but LTC Properties’ announcement a month ago has been followed by a much larger seniors housing problem at Ventas. At first, everyone thought it was the skilled nursing sector that was going to give the healthcare REITs heartburn. After all, that was the sector struggling the most, right? But seniors housing has not been as resilient as previously thought. Brookdale Senior Living has had its well-documented problems, and last month LTC Properties disclosed issues it was having with underperforming memory care tenants. Then we had last week’s disclosure by Ventas that it was moving more than 70 communities leased to... Read More »Two Louisville-area assisted living communities sold
Allen McMurtry, Megan Fetter and David Kliewer of Cushman & Wakefield’s Tampa office represented Senior Care US Holdings, Inc., in the sale of its two assisted living/memory care communities near Louisville, Kentucky. Both communities have been operated by Elmcroft Senior Living since opening in 2012, with one featuring 56 assisted living units, 24 memory care units and a 99% occupancy, and another consisting of 31 assisted living units and 34 memory care units at 85% occupancy. Capital Health Group LLC was the buyer on behalf of a joint venture between Hunt Realty Investments and the Teacher Retirement System of Texas. Read More »