Welltower’s DeRosa: Health Care Real Estate is the New Retail

While remaining relatively mum on the status of his company’s major skilled nursing play, Welltower Inc. (NYSE: WELL) CEO Tom DeRosa this week presented a vision of the future in which health care assets replace retail as the cornerstone of real estate development. “For generations, we thought of anchors as retail — it’s retail that […]

Skilled Nursing Rents 10% Too High, Analysts Say

Skilled nursing rents must decline by about 10% across the board in order to ensure the facilities’ long-term stability, a Wednesday report from Green Street Advisors has concluded. Real estate investment trusts (REITs) must achieve rent coverage of around 1.9 times to achieve stability for their tenants, the real estate research firm’s analysts Lukas Hartwich […]

Looking Ahead to the Top Skilled Nursing Trends of 2019

We’ve made it to the end of 2018, which will likely go down as one of the most eventful years in the history of the long-term and post-acute care industry. Between the first round of Value-Based Purchasing penalties taking effect and the rapid rollout of the Patient-Driven Payment Model (PDPM), it’s probably a safe bet […]

ManorCare, ProMedica Leaders Offer First Look Inside New Skilled Nursing Giant

The leaders of the newly merged ProMedica and HCR ManorCare on Tuesday peeled back the curtain on their plans for the future, with a specific focus on using an in-house insurance plan to test ideas for expanded partnerships. Speaking in friendly territory — the stage at new landlord Welltower Inc.’s (NYSE: WELL) investor presentation in […]

Washington Post Blames Private Equity for ManorCare Woes

Skilled nursing chain HCR ManorCare’s struggles were the direct result of its former private equity ownership, a Sunday report in The Washington Post alleged. The paper analyzed inspection records as part of the wide-ranging story, finding that the number of health code violations found at ManorCare rose from 1,584 in 2013 to nearly 2,000 in 2017 […]

KeyBank Lends $36M for Four Properties; Former ManorCare SNF Sells for $5.8M

KeyBank Secures $36.3M in Ohio for Foundations  KeyBank Real Estate Capital financed Foundations Health Solutions’ $36.3 million acquisition of four skilled nursing facilities in Ohio, the lender announced earlier this week. The 442-bed portfolio is spread across the Buckeye State, with the properties built between 1961 and 1984. KeyBank funded the deal through the Federal […]

Formation Chairman: New Models for Skilled Nursing are Emerging

Formation Capital has a long history in skilled nursing and based on our conversation with Arnold Whitman — its founder and chairman — the company continues to see a big opportunity for the industry to take advantage of the shift to value-based care. During the National Investment Centers for Seniors Housing & Care (NIC) conference in […]

Welltower, ProMedica to Slash Rent on Former ManorCare Skilled Nursing Facilities

The former HCR ManorCare skilled nursing facilities received a major rent break under their new ownership structure. HCP Properties, the 80-20 joint venture between Welltower Inc. (NYSE: WELL) and non-profit hospital provider ProMedica, will charge $179 million for the first year of its 15-year lease with the 168 skilled nursing facilities and 58 senior living […]

Lancaster Pollard Secures $16.8M Refi; Welltower Continues Florida Sell-Off

Lancaster Pollard Facilitates $16.8M Refi in Pennsylvania Lancaster Pollard, a lender based in Columbus, Ohio, facilitated a $16.8 million refinance of the Mountain View SNF for Complete Healthcare Resources. The 271-bed facility, located in Coal Township, Pa., also has eight independent living units. The refinance was closed through the Federal Housing Administration’s Sec. 232/223(f) program; it decreases overall […]

South Florida Shuffle: Welltower Sells Building for $15.4M, Two-SNF Portfolio Nets $24 Million

Welltower Offloads Broward County SNF for $15.4M Welltower Inc. (NYSE: WELL) recently sold the Heartland of Tamarac skilled nursing facility for $15.4 million, the South Florida Business Journal reported. The real estate investment trust offloaded the building to 5901 Tamarac LLC, a company associated with Millennium Management of Miami, according to the publication. The facility […]

Has the Skilled Nursing Industry Finally Hit Bottom?

As summer ends, it’s tempting to start looking ahead to what 2019 will hold for the skilled nursing industry. While the widely praised new payment model will likely grab the most attention, next year could also signal an upward climb out of an industry valley, or more troubled times ahead — depending on who you […]

Sanford, Fresh Off Good Samaritan Merger, Eyes $1B Chicago Health System

Non-profit hospital system Sanford Health is on track to complete a merger with a skilled nursing provider by fall, and a recent report hints that the operator isn’t done expanding. The Sioux Falls, S.D.-based Sanford could soon announce a merger with a $1 billion health system based in Chicago, CEO Kelby Krabbenhoft teased to SiouxFalls.Business. […]

ProMedica Lays Off 100, Cuts 60 More Jobs One Month After ManorCare Acquisition

Less than a month after completing its acquisition of skilled nursing giant HCR ManorCare, ProMedica Health System this week laid off 100 employees and cut 60 unfilled positions. The Toledo Blade first reported the news. The majority of the layoffs consisted of employees “in leadership roles and corporate functions,” according to a statement provided to […]

S&P Downgrades ProMedica in Wake of ManorCare-Welltower Deal

After warning last month that a credit downgrade was likely, Standard & Poor’s this week lowered its long-term credit rating for non-profit health care provider ProMedica by multiple levels. The Toledo, Ohio-based hospital and skilled nursing chain now sits at BBB, down from the A+ rating ProMedica had maintained ahead of its blockbuster deal to […]

ProMedica-ManorCare Deal Could Signal ‘Titanic Shift’ in Skilled Nursing

Welltower Inc. (NYSE: WELL) and ProMedica’s megadeal to acquire Quality Care Properties’ real estate has given the skilled nursing industry a boost, and could spur other similar deals in the future. As part of the $4.4 billion joint venture, non-profit hospital system ProMedica also picked up the struggling skilled nursing chain HCR ManorCare, QCP’s former primary […]

S&P Warns of ProMedica Downgrade in Wake of ManorCare Acquisition

Standard & Poor’s last week warned that ProMedica Health System’s acquisition of struggling skilled nursing chain HCR ManorCare may lead to a credit downgrade by the end of the summer. While asserting that the non-profit chain still has an A+ rating for its long-term debt, S&P expressed concerns about the way ProMedica funded the transaction, […]

Welltower, ProMedica Close on $4.4B QCP-ManorCare Deal

Just one day after shareholders approved Welltower Inc.’s (NYSE: WELL) acquisition of Quality Care Properties (NYSE: QCP), the rest of the megadeal dominoes fell late Thursday. The Toledo, Ohio-based real estate investment trust (REIT) announced that it had closed on its joint-venture purchase of QCP’s real estate with non-profit hospital system ProMedica. In the same […]