In an effort to align common interests and boost revenues in a choppy market, healthcare REITs are switching operators. By Jane Adler In a challenging environment, healthcare real estate investment trusts (REITs) are changing partners and optimizing their operator mix. Regional providers are gaining favor as the REITs diversify their partnerships and look for geographic balance in their portfolios. The structures of operating agreements are also under review. Joint-venture partnerships and income-sharing agreements have always been important, but are now being re-examined and fine-tuned to better align the interests of …
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Koelsch Communities leverages 60-year history in seniors housing to master development, memory care. By Jeff Shaw For Aaron Koelsch, his involvement in seniors housing started early. His parents bought a nursing home in 1958 and raised the entire family — including all five of their children — on the property. “We were born there, and we were expected to do anything from cleaning baseboards to giving care to cooking,” recalls Koelsch. “We always had a lot of work. Frankly, growing up in the industry, it didn’t seem very attractive to a …
The seniors housing industry today is benefiting from a “more disciplined, rational debt sector” than in the past, emphasizes Chuck Hastings, vice president of finance and business development for Juniper Communities, a seniors housing operator of 22 properties in four states: Colorado, Florida, New Jersey and Pennsylvania. Twelve years ago, Hastings recalls that a borrower could secure acquisition financing at a 90 percent loan-to-value ratio, and the loan would be nonrecourse. “Those days are gone,” he says. Today, borrowers seeking acquisition financing can realistically expect to obtain a nonrecourse loan …