Senior Living News Wire

Ventas Inc. announced Monday morning that it will be purchasing Nationwide Health Properties Inc. (NHP) in a $7.4-billion stock deal that will create the nation’s largest health care real estate investment trust (REIT).  The combined entity will have more than 1,300 properties in 47 states, the District of Columbia and two Canadian provinces with 643 senior housing facilities and 379 skilled nursing facilities.  According to Ventas, senior housing will account for almost 55% of the combined NOI and skilled nursing will account for 22% and that private pay sources will represent 70% of the combined $1.3 billion in net operating income.  The purchase is expected to close in the third quarter of 2011 and upon the close of the transaction, Ventas shareholders will own approximately 65% of the combined entity with NHP shareholders owning the balance.

“The combination of Ventas and NHP increases the scale and diversification of the combined company, the strength and flexibility of the company’s balance sheet and the quality and geography of the assets,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. “With Ventas’s successful track record of value-creating transactions and NHP’s longstanding history of regional, asset-level acquisitions, taken together with one of the strongest balance sheets in the REIT industry, the combined company will have a unique opportunity for continued external growth. We are excited to move forward with the NHP team. This combination unites two similar cultures that share core values and a strong track record of delivering superior returns to shareholders.”

Ventas’s CEO Cafaro will continue as Chairman and CEO of the combined company with NHP Chairman, President and CEO Douglas M. Pasquale serving as a senior adviser during the transition.  After the purchase is complete, Ventas will expand its board to 13 members and add Pasquale and two NHP directors to the board.

“For NHP shareholders, Ventas is the right partner, bringing the right value at the right time. After 25 wonderful years of growth and success, we look forward to joining forces with Ventas, which shares our legacy of financial strength and top-tier returns for shareholders,” said Douglas M. Pasquale, NHP’s Chairman, President and Chief Executive Officer. “Our shareholders, property operators and tenants will all benefit from our expanded strength, diversification and capabilities. We’re pleased that this all-stock transaction offers NHP shareholders a premium and also the opportunity to participate in the combined company’s
future prospects for dividends and growth. I am personally committed to ensuring a smooth transition and the completion of the transaction as expeditiously as possible.”

Separately, NHP announced its fourth quarter earnings that saw a 14% rise in profit to $35.3 million, up from $30.9 million in Q4 2009 with revenues rising 20% to $116.7 million.

Health Care REIT, Inc. (NYSE:HCN) announced Monday that it has signed a definitive agreement to acquire substantially all of the real estate assets of privately-owned Genesis HealthCare (Genesis)for $2.4 billion.  Genesis will continue to operate the facilities under a long-term triple-net master lease where the first year rent will provide for $198 million with an initial cash yield of 8.25%.  The acquisition will include 147 post-acute, skilled nursing and assisted living facilities located in 11 states in the Northeast and Mid-Atlantic. Genesis’ largest markets include Massachusetts, Maryland, New Jersey, Pennsylvania and West Virginia.

As part of the agreement, HCN will have the right to own certain facilities that Genesis currently leases from third-party landlords, pursuant to fixed price purchase options, as well as any facilities that Genesis acquires or develops during the initial 15-year term of the lease at pre-determined lease yields.  HCN will also receive the option to acquire a 9.9% ownership interest in Genesis for a fixed price equal to $47 million throughout the initial lease term

"We expect Health Care REIT’s acquisition and leaseback of Genesis HealthCare’s assets will be highly accretive to HCN’s earnings," says George L. Chapman, Health Care REIT’s Chairman, Chief Executive Officer and President. "The acquisition is consistent with our commitment to partner with best-in-class operators across the health care acuity spectrum. The investment provides embedded opportunities for both organic and external growth. Genesis is positioned to grow its quality payor mix and optimize occupancy as it continues to meet the needs of an increasing post-acute, short-stay patient population. In addition, Genesis has built a robust pipeline of potential acquisition and development opportunities as it expands its footprint along the eastern seaboard. This new partnership between Genesis and Health Care REIT is an exciting growth story."

The transaction, which is expected to close in the second quarter, is structured as an equity purchase of the Genesis real estate holdings subsidiary and is expected to be accretive to HCN’s funds from operations guidance issued earlier this month with a pro forma 12% growth over the midpoint of its 2011 guidance.  HCN has obtained a commitment for a bridge loan in an amount up to $2.4 billion which will be available to finance the acquisition of Genesis, if necessary.  Genesis is privately-owned by affiliates of Formation Capital and JER Partners.

George V. Hager, Jr., Chief Executive Officer of Genesis added, "We at Genesis are delighted to have the opportunity to partner with Health Care REIT. Together, we will continue our high level of investment in optimizing and expanding our facilities to meet the needs of our increasingly acute patient population. Genesis prides itself on providing patients and residents with outstanding clinical care, delivered by highly skilled practitioners in a warm and comfortable setting. We selected HCN as our partner because of this shared vision and its commitment to serve as a trusted, long-term partner in our growth."

The nursing home to the movie industry may have found a life line with a new agreement after a two year saga over its proposed shutdown.  The Motion Picture & Television Fund (MPTF) announced last week that it has entered into a non-binding letter of intent with Providence Health & Services California that will enable MPTF to continue providing long-term care services on its campus, setting aside its closure announcement of early 2009.

The terms of the proposed agreement state that Providence would sign a long-term master lease agreement for the MPTF hospital facilities and the  state licenses for the 250-bed hospital would be transferred to nearby Providence Tarzana Medical Center.  MPTF and Providence stated that they will continue to meet the needs of the entertainment community through industry-exclusive long-term care and dementia care units.

“Over the last year, I have been working closely with my fellow board members and management to find a positive resolution to our long-term care and acute care issue. With this letter of intent, the framework is now in place to accomplish that. The new affiliation with Providence Health & Services will create a vibrant medical campus with services never before available to our industry members. It exceeds all expectations by providing continuity for our current long-term care residents and a continuum of care for our 180 campus residents in independent and assisted living, including long-term care and our dementia care unit Harry’s Haven,” said Bob Beitcher, chief executive officer of MPTF.

Sunrise Senior Living, Inc. (NYSE: SRZ) announced its fourth quarter and full year 2010 results last week that showed continued progress in its restructuring efforts but remains cautious about its future performance.  The company’s fourth quarter net income was $50 million versus $10.4 million during the same quarter of 2009.  The increase in the company’s bottom line were the result of one time fees and gains on sale from the company’s HCP buyout and sale of its venture interests to Ventas.  Sunrise reported total operating revenues of $1.4 billion for the twelve months ended December 31, 2010, as compared to $1.5 billion for the full year 2009. During 2010, Sunrise reduced its consolidated debt to $163.0 million, as compared to $440.2 million at December 31, 2009, a reduction of $277.2 million.

"2010 was a year of strengthening Sunrise and we are now well positioned to take advantage of great opportunities in 2011 and the years to come," said Mark Ordan, Sunrise’s chief executive officer. "Bottom line 2010 performance is benefitted by outsized gains realized in our restructuring. Our operating results are adversely affected by the reduction of revenue from our restructuring without an equivalent reduction of expenses, and our G&A was adversely affected by non-recurring items. While we are excited by our progress, optimistic and committed to our future, we have in our 10-K and supplemental 8-K provided investors with meaningful additional detail to enable a fuller understanding of both our progress and of the risks we still need to tackle."

Sunrise’s operating data for the fourth quarter includes:

• Comparable community revenues for the fourth quarter of 2010 increased by 4.8 percent, from $442.8 million for the fourth quarter of 2009 to $464.0 million for the fourth quarter of 2010.
• Average unit occupancy in comparable communities for the fourth quarter of 2010 was 88.3 percent, which was up 80 basis points from 87.5 percent for the fourth quarter of 2009, and up 60 basis points as compared to 87.7 percent in the third quarter of 2010.
• Average daily revenue per occupied unit in comparable communities increased 3.7 percent from $198.92 for the fourth quarter of 2009 to $206.32 for the fourth quarter of 2010. Excluding the impact of foreign exchange rates in 2010, average daily revenue per occupied unit for the comparable community portfolio increased 3.7 percent to $206.27 for the fourth quarter of 2010 as compared to the fourth quarter of 2009.
• Comparable community operating expenses for the fourth quarter of 2010 increased 0.3 percent from $326.0 million to $327.1 million. Foreign exchange rates in 2010 did not significantly impact these operating expense results in the fourth quarter of 2010.

Sunrise 8-K

Sunrise Q4 2010 Supplemental Data

There’s a booming sound coming from southern California and its a newly proposed 100+ acre retirement community.  Originally designed as a retirement community for the LGBT community, the master planned community has evolved into a multi-generational project that will include 300 residences in eight neighborhoods, an entertainment complex, a boutique hotel, a gym, and other amenities in phase one with an expected price tag of $250 million for the first phase.  The residences will include condominiums and single family homes.  The group expects that the project will break ground in late 2012 with an opening in 2014.

Visit Boom’s website for more information.  Visit Architizer for renderings of some of Boom’s neighborhood concepts.

Boomers are postponing retirement for many reasons but the real question is how long will they keep working past their initial expectations for their original planned retirement date.  According to a survey of CPA financial planners surveyed by the American Institute of Certified Public Accountants, 50% of boomer clients are planning to work at least for year longer than originally planned.  .  Results of the survey show:

• 32.3 percent of CPA financial planners said 1 to 3 years
• 39.3 percent said 4 to 6 years
• 9.8 percent said 7 to 10 years
• 3.7 percent said more than 10 years

The results of the survey are in spite of the fact that the stock market has recovered significantly since the lows of 2009.  Other results show that 48 percent of CPA clients are somewhat or very pessimistic about the U.S. economy amid gaping budget deficits and high unemployment.  CPAs saw their clients declined more often for a mortgage or refinance due to lower home values or tighter underwriting standards.

"Boomers have been scarred by the economic turmoil of the past few years and face complex challenges going forward," said Clark M. Blackman II, chair of the AICPA’s Personal Financial Planning Executive Committee. "While more optimistic about the markets, many Boomers remain uncertain about the U.S. economy and their own situations as they contend with job loss – their own and their children’s – lower home values and rising education costs."

Gentiva Health Services, Inc. (Nasdaq: GTIV) reported its fourth quarter and full-year 2010 results last week that showed the company’s total net revenue increasing to $465.0 million for the quarter and $1.45 billion for the year which is an increase of 26% from 2009.  Gentiva, the largest provider of home health and hospice services in the United States based on revenue, saw its hospice revenues in the 2010 fourth quarter up 6% from its own existing hospice business as well as $174.3 million in revenues from the Odyssey acquisition.  Hospice represented 42% of total net revenues in the fourth quarter of 2010, compared to 6% in the comparable quarter of 2009.

"2010 was a milestone year for us as we significantly expanded our hospice business mix through the Odyssey acquisition, while delivering strong operating results and continuing to deliver a high level of patient care," said Gentiva CEO Tony Strange . "With our increased scale and capabilities, we are well positioned for another strong year in 2011."

Gentiva’s outlook for 2011 shows full-year net revenues to be in the range of $1.90 billion to $1.95 billion and adjusted income from continuing operations attributable to Gentiva shareholders to be in the range of $2.70 to $2.80 on a diluted per share basis.  The outlook accounts for the full-year impact of its Odyssey HealthCare, Inc. acquisition and the final rules regarding Medicare home health reimbursement rates for 2011. 

For more details, visit Gentiva’s 8-K

It’s performance review and annual bonus time in corporate America….who will stay, who will go?  Stick with Movers and Shakers over the next few weeks and we’ll keep you in the loop on who’s going where…got a scoop about a recent add to your team?  Send us your staffing announcements and we’ll be sure to plant them in a future edition of movers & shakers for the world to know.  movers-shakers@seniorhousingnews.com

Integral Senior Living Names Hadfield Regional Marketing Director

Integral Senior Living  (ISL) is pleased to announce that Daniel J. Hadfield (Dan) has joined the management team as a Regional Marketing Director for the company.  Prior to joining ISL, he was with Merrill Gardens for five years as a Regional Marketing Director. Prior to which, he was with Atria Senior Living Group as a Regional Sales Manager.  Dan has over 20 years of sales and marketing experience which he looks forward to sharing with the team at ISL. He also holds a Bachelor of Science degree from Oregon State University. 

Omnicare Appoints John L. Workman to the Additional Role of President

Omnicare, Inc. (NYSE:OCR) has appointed John L. Workman to the additional role of President, effective immediately. He will remain Chief Financial Officer of the Company and will continue to report to John Figueroa, Omnicare’s Chief Executive Officer.  Mr. Workman, age 59, has served as Omnicare’s Executive Vice President and Chief Financial Officer since November 2009. In addition to his financial role, Mr. Workman oversees purchasing, human resources, information technology and trade relations at the Company.  Before joining Omnicare, Mr. Workman served as Executive Vice President and Chief Financial Officer of HealthSouth Corporation, the nation’s largest provider of inpatient rehabilitative healthcare services, since 2004. From 1998 to 2004, he served in various senior executive positions at U.S. Can Company, including as its Chief Financial Officer from 1998 to 2002, as its Chief Operating Officer from 2002 to 2003 and as its Chief Executive Officer from 2003 to 2004. Prior to that, Mr. Workman spent 14 years with Montgomery Ward & Company, Inc. where he held a number of management and executive positions, including Controller, Chief Financial Officer and Chief Restructuring Officer.  Mr. Workman has a bachelor’s degree in accounting from Indiana University and earned his master of business administration degree from the University of Chicago.

Cornthwaite Named Associate Executive Director for Riderwood in Silver Spring, MD

Erickson Living has named Ben Cornthwaite the Associate Executive Director for Riderwood.  Cornthwaite served previously for more than six years as Senior Administrator for Renaissance Gardens at Greenspring in Springfield, Virginia. His leadership resulted in a deficiency free state survey for 2010 and a 5-star CMMS rating. His background also includes two years as the Administrator there where he had similar success: a 2007 deficiency free survey, achieving CARF /CCAC accreditation and development of a licensed Hospice program.  Prior to joining to Erickson Living, Cornthwaite was an Administrator for Medical Facilities of America.  He holds a MA degree in Management of Aging Services from UMBC and a BS degree in Health Services Administration from James Madison University.

MIRADOR NAMES CINDY WALDRON EXECUTIVE DIRECTOR

Cindy Waldron has been named executive director of Mirador, Corpus Christi’s first full service life care senior living community. The announcement was made by Charles B. Brewer, president and CEO of Senior Quality Lifestyles Corporation (SQLC). Waldron brings to Mirador more than 20 years experience in senior living management, ranging from chief operating officer to executive director.  She will direct all aspects of the grand opening for the community, which is scheduled to open this summer. 

“We are looking forward to having Cindy as part of our team,” said Brewer. “SQLC conducted an extensive search to find the right person for Mirador, and with Cindy’s far-reaching experience and qualifications, we knew she was the perfect fit.  She has a complete understanding of the industry, and has transitioned into her new duties with a positive attitude.”

Waldron comes to Corpus Christi from Missouri, where she served as executive director for Villa Theresa and oversaw the renovation of the community into a full service continuing care retirement community (CCRC).  She is a registered nurse and holds a Bachelor of Science degree in Management from William Woods University in Fulton, Missouri, and a Masters of Healthcare Administration degree from the University of Missouri-Columbia School of Medicine.

Bruce Yarwood Joins Skilled Healthcare Group’s Board of Directors

Skilled Healthcare Group, Inc. (NYSE: SKH) recently announced that Bruce Yarwood has been appointed to serve on the Company’s Board of Directors. Mr. Yarwood is a Class III director with a term expiring at the Company’s 2013 Annual Meeting of Stockholders.  He has also been appointed to serve as a member of the Corporate Governance, Quality and Compliance Committee of the Board.  Mr. Yarwood served as the President and Chief Executive Officer of the American Health Care Association (AHCA), the nation’s largest association of long-term and post-acute care providers, from 2005 through 2010.  From 1989 and until joining AHCA in 2005, Mr. Yarwood was a partner with a lobbying firm that served as a primary lobbyist for AHCA.  Mr. Yarwood has over 35 years of management, operational and advocacy experience in the long-term care industry.  Under the former Governor Brown administration during the 1970′s, he held executive positions with the California Department of Health and was responsible for the California Medicaid program, also known as Medi-Cal.  Mr. Yarwood holds a Master’s Degree in Public Administration from California State University in Sacramento and a Bachelor’s Degree from the University of California at Berkeley.

Edgewater Names Mains Assisted Living Sales Counselor

Edgewater is pleased to announce Kirstin Mains as Assisted Living Sales Counselor at the senior living community, located on a 50-acre campus in West Des Moines. In her position, Mains is responsible for providing counsel to seniors and their families seeking the support of Edgewater’s full continuum of wellness, that includes Brookside Assisted Living and Beacon Springs Memory Support, and educating the public about the community and services it offers.

Mains has more than 17 years of experience in developing, maintaining and maturing solid partnerships with Greater Des Moines businesses. Prior to joining the Edgewater team, she was a small business owner and served in various sales and marketing roles in the Chamber of Commerce and hospitality industries.   Mains earned a bachelor of science degree in hotel and restaurant management from Iowa State University, in Ames, Iowa. She’s also a member of various local organizations, such as the Greater Des Moines Partnership, the West Des Moines Chamber of Commerce and the Urbandale Chamber of Commerce.

NHP Derrick D. Pete Promoted to Senior Vice President

Nationwide Health Properties, Inc. (NYSE: NHP) recently announced the promotion of Derrick D. Pete to Senior Vice President Corporate Development. Derrick D. Pete joined NHP in December 2004 and has played an instrumental role in identifying new strategic growth opportunities for the Company while continuing to implement NHP’s corporate priorities. As Senior Vice President Corporate Development, Mr. Pete will continue to report to Douglas Pasquale and will be responsible for the evaluation and recommendation of new initiatives. He will maintain his management oversight responsibility for NHP’s enterprise risk management program and will also maintain his management of NHP’s Corporate Technology, Marketing and Research areas.

"Derrick has made a tremendous contribution to NHP in a broad spectrum of areas, including strategy development, marketing, business development and portfolio management. His considerable tenure with NHP, deep experience across several areas of the Company and his significant industry knowledge give him a unique ability to help drive growth opportunities at NHP and to further strengthen our position within the rapidly evolving healthcare real estate sector," said Douglas Pasquale, NHP’s Chairman, President and Chief Executive Officer.

Isle at Watercrest Names McGuinness Director of Admissions and Social Services

Jessica McGuinness has been named director of admissions and social services of Isle at Watercrest, the assisted living and skilled nursing community of Watercrest at Mansfield. McGuinness joins Isle at Watercrest with more than five years of experience in senior care. She served as the client services manager for Senior Helpers, in Irving, Texas. Previously, she was the central intake coordinator for CareSouth and also served as the admissions director for HCR ManorCare Health Services in North Richland Hills, Texas.

Who says there is no excitement at the retirement communities these days?  A retirement community in Southwest Florida got quite a show after installing a surveillance camera to monitor who had been stealing breakfast sausages from its community cafeteria. After the community showed the video to the local police authorities, they arrested 34-year-old Joshua Abernathy who was charged with petty theft.  Just goes to show you that retirees know what it takes when it comes to video and technical know how when their meals are on the line.

Veteran care is an important, growing part of America’s aging population challenges and new statistics show the chance that senior veterans and those from the Baby Boomer generation to be homeless are significantly higher than non-veterans.  The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) recently published a study on the extent and nature of homelessness among America’s veterans as an adjunct to the 2009 Annual Homeless Assessment Report to Congress .  The research finds that almost 136,000 veterans spent at least one night in a homeless shelter in 2009.

“With our federal, state and community partners working together, more Veterans are moving into safe housing,” said Secretary of Veterans Affairs Eric K. Shinseki.  “But we’re not done yet.  Providing assistance in mental health, substance abuse treatment, education and employment goes hand-in-hand with preventive steps and permanent supportive housing.  We continue to work towards our goal of finding every Veteran safe housing and access to needed services.”

The study finds that veterans represent almost 12 percent of all homeless persons during the 2009 study.  Other findings from the study include:

• 39 percent of homeless veterans are 51–61 years compared with 19 percent of homeless non-veterans
• 9 percent of homeless veterans are 62 years and older compared with 4 percent of homeless non-veterans
• Veterans are fifty percent more likely to become homeless compared to all Americans and the risk is even greater among veterans living in poverty and poor minority veterans
• Nearly half of homeless veterans were located in California, Texas, New York and Florida while only 28 percent of all veterans were located in those same four States

For the full report, visit:  Veteran Homelessness: A Supplement to the 2009 Annual Homeless Assessment Report to Congress.

Brookdale Senior Living Inc. (NYSE: BKD) released its fourth quarter 2010 and full year results that showed an increase in cash flow from facility operations increase in the quarter by 40.6% to $69.6 million for the quarter versus its same results for Q4 2009.  Brookdale saw the same store operating income during Q4 up 8% from 2009 on improved average monthly revenue per unit of $4,498.  The company saw its average occupancy tick up 10 basis points to 87.5% from Q3 2010 and the figure is 90 basis points higher than its occupancy rate in the fourth quarter of 2009.  Brookdale’s outlook for full year 2011 expects cash from facility operations to range between $2.30 and $2.40 per share.

"We had a strong fourth quarter with continued increases in occupancy, improvement in revenue per unit, further roll-out of ancillary services, encouraging entry fee activity and well-managed costs. With the positive trends in the fundamentals of our business through the majority of 2010, we are optimistic about 2011 and very optimistic for 2012 and beyond. Additionally, the industry is clearly moving into another consolidation phase and we certainly expect to participate using our scale and platform advantages," said Bill Sheriff, Brookdale’s CEO.

The comparable revenues for the same communities were up 3.2% year over year with operating income up 2.2% for 2010 compared with 2009. For the twelve months ended December 31, 2010, operating contribution margin was 34.9%, down from 35.4% for the full year 2009.  Brookdale saw positive growth with its home health agency business as it served approximately 26,500 units, up from 20,200 units the previous year and its operating income per occupied unit for those service increase to $264 per unit versus $206 a year in 2009.

Mark Ohlendorf, Co-President and CFO of Brookdale, commented, "We continue to strengthen our position to create value for shareholders. We have used positive cash flow to deliver the balance sheet, while increasing our liquidity and financial flexibility to be able to respond to opportunities as they arise. We are investing in high-return projects to expand or reposition our current portfolio and in systems that further our strategic advantage. Our ancillary services footprint continues to expand and we are broadening the scope of our ancillary services platform with hospice services targeted to start in at least four of our markets this year. The strength of our platform and our solid financial profile positions us well for long-term growth."

Holladay Park Plaza Celebrates December 2010 Bond Closing

Pacific Retirement Services, Inc. (PRS) is pleased to announce that Holladay Park Plaza—a PRS-affiliated Continuing Care Retirement Community in Portland, Oregon—was issued Variable Rate Demand Revenue Refunding Bonds, Series 2010A (Holladay Park Plaza Project), totaling $14,460,000, on December 23, 2010.

The Series 2010A Bonds were issued as Bank Qualified Bonds under a provision in the American Recovery and Reinvestment Act of 2009 – the Stimulus Package, which expired on December 31, 2010. The Bonds were purchased from and will be held by Union Bank of Portland, Oregon, for seven years. The purpose of the Bonds is to refund the outstanding Series 2003 Bonds and pay certain costs of issuance of the Bonds.

• The Bonds were issued by the Hospital Facilities Authority of Multnomah County, Oregon.
• Cain Brothers was the financial advisor.
• The initial bondholder was Union Bank.

“We’re pleased about this transaction,” says John Larson, Executive Director of Holladay Park Plaza. “It provides Holladay Park Plaza and its residents a favorable cost of capital, and allows the Plaza to establish and build a relationship with Union Bank through its Portland, Oregon, branch.”

Senior Management Advisors and Pecan Tree Holdings Acquire High Springs Senior Living Community

Senior Management Advisors (SMA), an operator of full service senior living communities in Florida and Georgia, and Pecan Tree Holdings LLC, a group of private investors, are the new owners of Plantation Oaks Senior Living Residence, a senior living community formerly known as High Springs Care Center and located in High Springs, Fla., serving the greater Gainesville area.  SMA will complete a $60,000 renovation of the community’s 31 studio apartments in approximately two months. The renovation will include conversion of the community’s Jack and Jill style shared bathrooms into private bathrooms.

“SMA, with financial support from Pecan Tree Holdings, will rejuvenate Plantation Oaks Senior Living Residence to provide a comfortable home for seniors in the greater Gainesville area. Our facility will offer quality care, exceptional services and top of the line amenities in an intimate, homelike environment,” says Steven Piazza, president of SMA. “Although the community has been closed for several years, the property is in good condition and only minor refurbishment will be required.”

Congress Construction Co. Starts Ambitious Milwaukee Project

The Congress Companies recently commencement of the construction and renovation project for the $18 million Bel Air Health Center, a state-of-the-art long-term care and rehabilitation center located in Milwaukee, WI. Under a Turnkey-Leaseback solution provided by The Congress Companies, the Bel Air renovations will include the phased renovation and construction of a fully furnished and equipped, 102,000-square foot rehabilitation and nursing building, which will be leased and operated by the Nursing Home Operator, Elite Senior Living of NY.

The plans for Bel Air have 185 beds, a brand-new, 50-bed dedicated rehabilitation wing designed using the latest scientific and medical principles, a new, fully-equipped, 3,500-square foot rehabilitation and gym facility, all private, single-bedded rooms in the rehab wing, and all new furnishings and equipment throughout.  Financing for the project was done through HUD lender Rockport Mortgage Corp. which obtained a HUD Substantial Renovations Construction Loans through the Lean program.

Five Star Quality Care, Inc. (NYSE: FVE) released its its financial results for the quarter and year ended December 31, 2010 that showed fourth quarter revenues increasing 5.4% to $315.7 million from $299.5 million for the same period the previous year and income from continuing operations for the fourth quarter of 2010 was $6.4 million compared to $877,000 for Q4 2009.  Total revenue for 2010 increased 5.9% to $1.24 billion from $1.17 billion for 2009.  Five Star owns or leases and operates 212 senior living communities with 22,562 living units located in 30 states.

Operating highlights for Five Start Quality Care in Q4:

• Occupancy for the fourth quarter of 2010 was 85.9% compared to 86.2% for the same period in 2009.
• Average daily rate for the fourth quarter of 2010 increased by 4.0% to $150.11 from $144.29 in the same period in 2009.
• Percentages of revenue derived from private sources other than Medicare and Medicaid for the fourth quarter of 2010 decreased to 70.1% from 71.1% for Q4 2009.

Visit the FVE 8-K

National Church Residences (NCR) recently announced the acquisition of Legacy Village, a 48-acre retirement community in Xenia, Ohio, for $5.1 million. Legacy Village is comprised of 36 patio-style duplex and single-family homes, as well as a 34-unit assisted living center and memory care unit located on a 253 acre campus.  NCR plans to expand Legacy Village’s independent living component.

The campus dates back to 1869 and is currently home to a variety of ministries serving the local community.  As part of the campus development, Legacy Village Retirement Center was developed. In January 2010, Hope Hall, a 14-room, memory-care unit, was completed in Legacy Village Assisted Living, for the care of those with advanced stages of dementia and Alzheimer’s.

“NCR is pleased to expand its outreach to the seniors of Greene and surrounding counties,” said President & CEO Thomas W. Slemmer. “The addition of Legacy Village to our nationwide housing portfolio is the perfect way to celebrate 50 years of service to our nation’s seniors. NCR’s partnership with LMI is perfect coupling of philosophies and missions to serve seniors and to provide them with those resources needed to successfully age-in-place. We look forward to expanding the level of care and service at Legacy Village.”

As threat of a government shut down looms over the budget confrontation between Democrats and Republicans, some programs critical to seniors are on the chopping block according to the proposed House budget passed over the weekend by the House Republicans.  Some of the cuts outlined in the proposed house budget includes senior housing program cuts of over $500 million and substantial reductions in community programs that assist seniors as well as significant reductions in low-income housing programs.  Some of the additional cuts target job training and placement programs that are used by low-income seniors. 

The National Council on Aging (NCOA) is voicing concerns over the 64% reduction in the Senior Community Service Employment Program (SCSEP) which assists older adults return to the workforce.  The NCOA estimates that the cuts would result in the loss of over 83,000 part-time jobs, thus eliminating the primary source of income for many of them.

"For older adults aged 55-64, who cannot yet claim Social Security, the loss of this program could be particularly devastating," said Jim Firman, president and CEO of the National Council on Aging (NCOA). "According to data from the U.S. Department of Labor, older workers who have lost a job are more likely than any other age group to face very long-term unemployment and remain jobless for 99 weeks or more."