Friday, September 13, 2024
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DevelopmentFrom The Magazine

Development Lessons from Abroad 

by Jeff Shaw

Some foreign countries have taken groundbreaking approaches to seniors housing, from innovative memory care concepts to large-scale luxury communities capitalizing on economies of scale. By Jeff Shaw Although private-pay seniors housing may be considered a niche asset class in the United States, it features a scale, maturity and sophistication that far outpaces the industry in other countries. But that scale means that parts of the industry are standardized. Innovations are happening in other parts of the world that still have fresh eyes for this type of housing — innovations that …

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From The MagazineLegal Issues

Legislative Onslaught Galvanizes Industry

by Jeff Shaw

As the regulatory environment in the seniors housing and skilled nursing sectors becomes increasingly burdensome, leading advocates are pushing back on multiple fronts. By Jeff Shaw Seniors housing has always been a hot-button issue and a target for government regulation, given its role in caring for a vulnerable population of seniors with healthcare needs. Even by that standard, though, there are a lot of legislative challenges coming down the pike for owners and operators. • Sen. Bob Casey (D-Pa.), chair of the U.S. Senate Special Committee on Aging, held a …

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Company NewsFrom The MagazineOperations

Company Profile: A Holistic Approach to Care

by Jeff Shaw

Lifespark seeks to create a comprehensive healthcare system for seniors that takes wellness into account. By Jeff Shaw The executives at Lifespark want to make something extremely clear: It is not a seniors housing company. Seniors housing is simply one element in its larger plans to revolutionize healthcare for seniors. Based in the Minneapolis suburb of St. Louis Park, Lifespark has over 3,000 employees and serves over 30,000 seniors throughout Minnesota and Wisconsin. But that 30,000 number comes despite having only 3,256 seniors housing units. The rest are served through …

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FinanceFrom The Magazine

GSEs Are Down, But Not Out

by Jeff Shaw

Freddie Mac is in the midst of a transaction rally, while Fannie Mae endures a wave of delinquencies fueled by troubled seniors housing loans. By Jeff Shaw Freddie Mac and Fannie Mae — collectively known as the government-sponsored enterprises (GSEs) — have been on divergent paths in recent years when it comes to lending in the seniors housing sector. The two agencies posted similar deal volumes in 2019 before the onset of the COVID-19 pandemic, with both closing over $3 billion in loans that year. While loan closings fell during …

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DevelopmentFrom The Magazine

Savvy Developers Seize Window of Opportunity

by Jeff Shaw

While ground-up construction has slowed dramatically due to a confluence of factors, contrarians are timing the delivery of new product to serve an aging population. By Jane Adler Post-pandemic, senior living owners and operators are rightfully focused on regaining occupancy and stabilizing their assets. Expansion opportunities have mostly been limited to acquisitions of troubled properties purchased at a discount. Inflation, relatively high interest rates, a tight labor market and even tighter capital markets have largely sidelined ground-up development.   But contrarian players believe now is the right time to build. …

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From The MagazineSkilled Nursing

Where We Stand With PDPM Five Years In

by Jeff Shaw

Despite years of build-up, the new skilled nursing payment model has flown under the radar since its implementation. Operators assess the impact. By Jeff Shaw In the years leading up to the implementation of the Patient-Driven Payment Model (PDPM), there was plenty of discussion and handwringing over the impact it would have on the skilled nursing industry. Officially launched on Oct. 1, 2019, by the Centers for Medicare & Medicaid Services (CMS), the model was supposed to be a sea change for healthcare billing and services. The impetus, at the …

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FinanceFrom The Magazine

HUD Lending Activity Set to Reach Crescendo in Second Half of FY 2024

by Jeff Shaw

By Matt Valley Loan production in the HUD Section 232 mortgage insurance program is running slightly behind last year’s pace through the first half of fiscal year (FY) 2024 due to two main factors: elevated interest rates and margin compression experienced by operators of skilled nursing and seniors housing facilities. But a growing deal pipeline will likely result in loan closings in FY 2024 surpassing last year’s total of $2.87 billion, says one seasoned lender. Michael Gehl, chief investment officer on the FHA lending team at NewPoint Real Estate Capital, …

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From The MagazineInvestment

Can Private Equity Time the Market?

by Jeff Shaw

With operating fundamentals on the rise and demographics on their side, this growing group of investors in seniors housing believes the stars are aligned to achieve healthy returns. By Jane Adler While some longstanding private equity groups in seniors housing remain on the sidelines as they work through the operational challenges created by the COVID-19 pandemic, others are making investments in the sector. Fund managers are raising capital and seeking investment opportunities. New private equity players are emerging. And more private equity groups are entering into joint ventures and forging …

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FinanceFrom The Magazine

NIC Capital Markets Panel Assesses Level of Distress Looming in Seniors Housing Sector

by Jeff Shaw

By Matt Valley What percentage of existing seniors housing loans are destined for trouble? An audience member posed that question during the closing session of the 2024 NIC Spring Conference in Dallas. The answer appears to be elusive. Titled “Capital Markets and Economic Update: Where We Have Been and Where We Are Going,” the March 7 session featured Joel Mendes, managing director at JLL, as panel moderator. Fellow participants included Jamie Cobb, chief financial officer at Columbia Pacific Advisors LLC; Doug Duncan, chief economist with Fannie Mae; and John Olympitis, …

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AcquisitionsFrom The Magazine

M&A Activity Poised to Rebound

by Jeff Shaw

Although 2023 was a down year for property sales, the seniors housing industry fared better than other real estate sectors, and many investors are already switching to ‘buy’ mode. By Jeff Shaw At first blush, 2023 looks like a bad year for seniors housing property sales. Total transaction volume fell 23 percent to $10.6 billion, the sector’s lowest mark in over a decade, according to data from MSCI Real Assets. “I’m not surprised to see transaction volume down from 2022,” says Kelly Sheehy, senior managing director of Artemis Real Estate …

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