The fallout from the coronavirus pandemic sweeping across the globe has been swift and severe with Corporate America taking extraordinary steps to protect its workers. Detroit’s Big Three automakers — Ford, General Motors and Fiat Chrysler — are suspending production this week in North America as a precaution against the coronavirus. Meanwhile, major airlines have cut capacity by 50 percent or more systemwide due to sharply reduced consumer demand. Millions of public school students will be off for at least the next few weeks in an effort to keep the …
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LOS ANGELES — If you look hard enough, it’s easy to see seniors housing opportunities throughout the U.S. Leftover land, raw sites, office buildings and obsolete malls can all serve as promising locations, according to participants in the “Experts Analyze the Smartest Plays for Developers in 2020” panel. The discussion took place during France Media’s InterFace Seniors Housing West conference, held Feb. 20 at the Omni Los Angeles. Though there was no one-size-fits-all approach to identifying development opportunities, panelist David Waite, partner at Cox, Castle & Nicholson, believes there are …
Brookdale CEO Sees ‘Great Progress’ in Company Turnaround Effort After Two Years at the Helm
by Jeff Shaw
Remember the signature tagline of the E.F. Hutton commercials of the 1970s and 1980s touting the sharp insights of the American stock brokerage firm? “When E.F. Hutton talks, people listen.” In its heyday, E.F. Hutton was one of the largest stock brokerage firms in the country. When Lucinda “Cindy” Baier, president and CEO of Brookdale Senior Living (NYSE: BKD), speaks, the seniors housing industry also listens intently — in part because of the company’s sheer size. As of Feb. 1, the Brentwood, Tennessee-based company operated and managed independent living, assisted …
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How One Lender is Expanding to Meet the Evolving Needs of Seniors Housing Borrowers
If they haven’t already, it may be time for investors to reject the notion that seniors housing is a niche asset class. To meet surging demand for the properties brought on by the aging baby boomer population, sophisticated owners have spent years building modern, amenity-rich properties that feel like home, a far cry from 20th century versions of the model, which were often bare-boned and sterile environments. Despite the complex nature of underwriting healthcare operators, the number of lenders serving seniors housing developers has ballooned over the years given the …
LOS ANGELES — Most seniors housing executives see this industry as a long-term play, according to panelists at France Media’s InterFace Seniors Housing West conference, held Feb. 20 at the Omni Los Angeles in Downtown Los Angeles. However, the industry “lifers” don’t necessarily see today’s investors taking the same approach to this product. The comments came during a session titled “Investment Update: Should Today’s Investors Buy, Sell or Hold in the 2020 Market?” “The investor community is focused on the quarter-to-quarter results and not thinking about the 10- to 20-year …
Disruption of Current Healthcare Model is Just What the Doctor Ordered, Says NIC Keynote Speaker
by Jeff Shaw
SAN DIEGO — As the long-standing “continental divide” between the healthcare industry and seniors housing begins to close due to economic realities, the disruptors who embrace the opportunity to build a more integrated model of care for the elderly will be the big winners. That’s the message Andy Waldeck, senior partner at Boston-based growth strategy consulting firm Innosight, delivered Thursday afternoon during his keynote address to several hundred attendees at the NIC Spring Conference. “Disruption is actually a process. It explains how industries change, how they become more affordable, more …
Integrating Healthcare Services into Seniors Housing Reduces ER Visits, Hospital Admissions
by Jeff Shaw
SAN DIEGO — Integrating healthcare services — such as primary care and nurse practitioners — into seniors housing can reduce costly emergency room (ER) visits and inpatient hospital stays, according to new data from ATI Advisory released Wednesday at the 2020 NIC Spring Conference. Comparing an assisted living facility that incorporates healthcare services to facilities that do not provide healthcare, ATI researchers found utilization rates plummeted by more than 50 percent in the integrated care model. “The data reveal a tremendous opportunity to reduce hospital-based healthcare services that put seniors’ …
LOS ANGELES — There are two main motivations that typically result in seniors making the transition to seniors housing. “Curiosity and crisis,” stated Matt Stevenson, senior vice president of operations at Oakmont Management Group. “These are completely separate, but really clear triggers.” Stevenson made the remarks as a participant in “The Power Panel: CEOs Discuss the State of the Industry.” The discussion was part of France Media’s InterFace Seniors Housing West conference, held Feb. 20 at the Omni Los Angeles in downtown Los Angeles. Panelists emphasized the importance of understanding …
LOS ANGELES — There is a deficit in seniors housing and it has nothing to do with occupancy rates, investment dollars or development opportunities. It’s the labor shortage, according to Charles Turner, a longtime industry veteran and current CEO of Kare, an application that pairs understaffed seniors housing communities with temporary workers. Turner made the comments as keynote speaker at France Media’s InterFace Seniors Housing West conference, held Feb. 20 at the Omni Los Angeles. “We all know what’s coming in the next decade — an onslaught of baby boomers aging into …
LOS ANGELES — Seniors housing development costs are expected to rise modestly in 2020, with labor and land the primary drivers of higher expenditure, according to research from CBRE, a global real estate services and investment firm based in Los Angeles. Total cost for a seniors housing development rose by 6.4 percent in 2019 to an average of $317 per square foot. Average returns (stabilized net operating income as a percentage of overall development costs) rose to 9.5 percent, up approximately 60 basis points in 2019. This is attributable to …