Senior Living News Wire

Magic is in the air at Martins Run, or at least it will appear that way during the Media-based senior living community’s ninth annual Leadership Award Celebration. Paying tribute to this year’s theme, “The Magic of Martins Run,” the event, scheduled for Wednesday, May 11, 2011, will recognize two people who have helped to make Martins Run such a desirable place to live. This year’s celebration will honor recipients Julie and Alan Gubernick, both of whom have devoted much of their time to Martins Run. The annual leadership award was created in 2003 to honor those individuals who have demonstrated devotion to Martins Run and its activities and to the local community through strong leadership in a variety of causes.

By all indications, the new performance-based contracts, and any new contractors, will be in place by Oct. 1, 2011. HUD has confirmed this during the recent LeadingAge and Contract Administration/Stakeholder meetings. Opportunities exist to help form the new guidance as well, though timeframes are tight.

Aviv Centers for Living is expected to close Friday on $50 million in financing that will centralize its skilled nursing and assisted living facilities onto a single campus.

Expected to close on Friday, the financing will fund construction of a new 144-bed replacement skilled nursing facility on the Peabody, Mass., campus and refinance about $17 million in outstanding debt on the assisted living facility.  The company said it expects to save $8.5 million in interest costs over the first five years of the loan as a result of the transaction.

“Each percent less on Aviv’s cost of capital is $500,000 that we are able to spend on delivering high quality health care services. Aviv put together the A Team and was relentless in presenting our credit worthiness to our banks,” said Stephen H. Neff, Aviv’s President and Chief Executive Officer.

During a year that has seen few non-investment grade health care bond issuances come to market, it’s an encouraging sign that things are starting to turn around.  According to data from Thompson Reuters, only $566 million of letter-of-credit-backed bonds were issued in the first quarter of 2011, compared to an average of $29.2 billion done annually from 2006 through 2010.

Aviv’s bonds are supported by two $25 million bank letters of credit, one provided by M&T Bank and the other by Citizens Bank. The short-term ratings on the bonds are the highest available from Moody’s said the company.

A swap on the majority of the variable-rate bonds is expected to fix the interest rate below 5 percent. According to the company, the effective rate is more than 3.5 percentage points lower than what it might have been able to achieve via unrated, unenhanced bonds, saving the community over $1.7 million in interest each year for a total of $8.5 million over just the first five years.

“It’s a remarkably low cost of capital, especially for a senior living provider and especially in this credit environment,” said Tanya K. Hahn, Senior Vice President of Lancaster Pollard, the specialty investment bank that structured and underwrote the transaction. “The new corporate financing structure actually sets Aviv up to grow financially stronger as time passes. They’ll be setting aside cash every year and serving residents on a more efficient and modern campus with new service lines. The next time they need to fund a project, they should have an even more appealing credit profile than they do now, which means even better access to affordable capital down the road.”

Washington will be the first state to clamp down on the explosive growth of elder care referral businesses according to a report from the Seattle Times.

The providers help guide families through a range of options for their loved ones that can include assisting living or other senior housing that best fits their needs for free.  In return, these companies can be paid as much as $3,500 per person by the facilities for providing them with a client.

Legislation sent to Governor Chris Gregoire will require referral companies to follow strict standards that include written disclosures of their commission rates.  Washington is the first state to pass a comprehensive law to rein in elder-care referral companies, according to research by AARP, a senior organization that supported the bill.

Across the nation, lawmakers are studying the bill as a model for change in at least a dozen states, consumer advocates and legislators said.

“The inherent problem is that referral agencies aim to make a profit at a most vulnerable time in an elder’s life,” said state Ombudsman Louise Ryan. “Right now, there are no rules.”

The bill requires companies to meet the following minimum standards:

• Obtaining a signed disclosure statement of fees and commissions.
• Maintaining at least $1 million in liability insurance coverage.
• Completing a standardized intake form that tracks a senior’s medical history and ability to pay for board and care.
• Follow the state Consumer Protection Act, which gives the state Attorney General’s Office authority to investigate complaints.

State gets tough on referrals for elder care

Outer Marker Properties broke ground on a new $12.2 million, 53,000 sq. ft. assisted living and memory care facility in Buford, GA, last week.

The project, Ivy Springs Manor, sits on 3.7 acres and will feature 78 total units with 54 of them dedicated to assisted living as well as another 24 that are devoted to memory care.  Expected to open in the spring of 2012, the location is a higher end facility that will have a big focus on technology.

“Technology was central to our design of Ivy Springs, both in amenities offered to residents and in the care provision we are implementing,” explained Jeramy Ragsdale, co-founder of Outer Marker Properties.

Residents will have access to technology stations allowing them to communicate with loved ones via easy-to-use, web cam computers. Care provision technologies such as tele-medicine suites and wireless care management systems are also being installed in the facility. Ivy Springs’ memory care suites will be equipped with unobtrusive monitoring technology such as motion sensors and bed weight sensors, both of which allow residents to be cared for comprehensively, while respecting their privacy.

Ivy Springs Manor is a joint venture Outer Marker Properties, LLC and Pinpoint Commercial, LLC and will be managed by The 410 Group, LLC. The facility is being designed by Wakefield Beasley and Associates and the lender on the project is Community and Southern Bank, Atlanta.

Senior Housing Properties Trust (NYSE: SNH) reported funds from operations (FFO) for the first quarter of 2011 came in at $62.1 million, or $0.44 per share.

During the quarter, net income was $31.8 million, or $0.22 per share, up from $30.0 million, or $0.24 per share, for the quarter ended March 31, 2010.  The weighted average number of common shares outstanding totaled 141.9 million and 127.4 million for the quarters ended March 31, 2011 and 2010, respectively.

The company said it acquired or entered agreements to acquire 33 properties for an aggregate purchase price of approximately $450.5 million since January 1, 2011.

SNH added that it has agreements to sell six properties, including three nursing homes with 329 beds, two MOBs with an aggregate of 12,578 square feet and one former assisted living facility which is being converted to another use, for combined sales prices totaling approximately $19.6 million.

“We expect the sale of these properties to occur during the second quarter of 2011. The sale of these properties is contingent upon completion of the buyer’s diligence and other customary closing conditions; accordingly, we can provide no assurance that we will sell these properties,” said the company in a statement.

SNH is a real estate investment trust, or REIT, that owns 327 properties located in 37 states and Washington, D.C. SNH is headquartered in Newton, MA.

For more details on the deals and earning, see here.

AT Home Care is partnering with WellAWARE Systems to offer a monitoring system designed to help seniors live more independently in their own homes as well as in long-term care facilities throughout Virginia.

The technology passively monitors key wellness indicators without the use of cameras, microphones, or wearable devices to enhance patient health data.

“We are excited to partner with the AT Home Care team as they continue to improve quality of care through innovative technology and personalized services while offering greater peace of mind for caregivers,” said Jeff Noce, CEO of WellAWARE Systems. “By working with innovative home health agencies like AT Home Care, we are continuing to create a new quality standard for people who need care.”

The technology behind the system is based around a wireless selection of “smart sensors” that are placed unobtrusively within a patient’s residence and provides 24/7 physiological data (i.e. sleep quality, bathroom visits and activity levels). The information gathered can alert caregivers to changes in living patterns that may indicate emerging health problems and provide the opportunity for early intervention.

“AT Home Care is committed to providing high quality, personalized care. We are now able to combine our exceptional hands on care with WellAWARE’s technology to better serve our patients throughout Virginia,” said Curt Kassab, Executive Vice President of AT Home Care.

Sunrise Senior Living (NYSE: SRZ) reported that Millennium Management LLC has a 5.3% stake in the company according to a recent filing from the U.S. Securities and Exchange Commission.

Millennium Management is a global investment management firm with approximately 800 employees and $10.1 billion in assets under management.

A portion of the company’s stake is held through Integrated Core Strategies (2,993,977 common shares) and Millenco LLC (55,197 common shares).  Millennium Management is managing member of both firms according to the SEC filing.

Based in McLean, Va, Sunrise operates 317 communities located in the United States, Canada and the United Kingdom, with a unit capacity of approximately 31,100 units as of March 31, 2011.  Earlier this month, Sunrise entered into an agreement with Morgan Stanley for the purchase 80% ownership interest AL US Development Venture, LLC, a joint venture entity for $45 million.

Mark Ordan, CEO of Sunrise, said the purchase fits perfectly with the company’s overall strategy of owning what it manages.  ”The purchase of these 15 purpose built Sunrise mansions clustered in major metropolitan markets is an excellent use of the proceeds of our convertible debt offering,” he said.

Hurting for cash, some county governments are looking to unload long term care facilities to private companies according to National Real Estate Investor.

Evans Senior Investments is one company that brokered the sale of a South Carolina continuing care community for $11.3 million to Madison Healthcare Management.  Prestige Healthcare, based in Louisville, will operate the property.

“The county had a good facility, and they felt it was time to put it into the management of a company that does this full time,” Bob Norcross, CEO at Prestige Healthcare said during an interview with NREI.  “It seems to be a very good fit between the county and us.”

According to the article, county-owned and operated nursing homes started to appear around the country in the 1960s.  But the downturn has lead to problems as many government owned facilities have seen their care costs continue to rise.  As a result, county-owned homes are being sold or shuttered — a situation that often raises concerns among local residents about the future of the homes.

The only options often are to sell the properties, or to raise taxes to cover needed repairs and cash shortfalls.

“The county government is not well suited to run specialty properties such as a nursing home,” says Wayne Adams, the county administrator of Newberry County, S.C. Besides the Newberry County facility, he says three county-owned long-term care facilities in South Carolina have been sold in the last two years. Only two county-owned projects are left statewide.

Cash-Strapped Counties Increasingly Look to Sell Government-Owned Seniors Housing Facilities

New research shows that individuals who purchased long term care insurance protection in 2010 favor limited duration policies according to the American Association for Long-Term Care Insurance.

The trade organization found that after analyzing 153,000 policies, 57.1% of purchasers selected policies with a benefit period of 4-years or less.

“Limited duration policies continue to become the preferred choice of many consumers who benefit from their lower cost and are willing to assume some of the risk for a catastrophic long-term care event,” said Jesse Slome, AALTCI’s executive director.  According to the Association’s annual study of new policy sales, 52.2 percent of buyers opted for a Benefit Period of 4-years or less in 2008.

Overall sales of long-term care insurance policies increased in 2010 according to the Association.  ”Given the economic uncertainty of the past few years, it is understandable that consumers favor ways to reduce the cost of coverage that while important is still a discretionary purchase,” Slome notes.  ”In addition, newer product design features such as the “shared care” option allow couples to purchase more affordable limited-duration policies and still be protected if one spouse requires care for longer than provided by their own policy.”  According to the Association, over three-fourths of individual long-term care insurance policies are purchased by couples.

The Association research revealed a slight increase in the age of buyers, a reversal of the trend towards younger buyers.  ”The overall age of individual long-term care insurance buyers has increased compared to prior years,” Slome states.  In 2010, some 80.7 percent of buyers were under the age of 65 compared to 84 percent in 2008.  ”Consumers watching their budgets may be delaying purchase, though most individuals (56%) continue to purchase coverage between the ages of 55 and 64.”

Atria Senior Living announced the company’s first achievement in Leadership in Energy and Environmental Design (LEED®) certification, a national standard developed by the U.S. Green Building Council (USGBC) to recognize high performance green buildings.

Part of a multi-pronged approach by the company to increase environmental sustainability, Atria Tamalpais Creek in Novato, California, was awarded silver LEED certification status earlier this month. It represents the first of the company’s more than 120 senior living communities to meet the USGBC’s stringent environmental guidelines to achieve LEED certification status, with five more Atria communities in New York and California also seeking certification.

LEED promotes a whole-building approach to sustainability, and specific goals must be met in five key areas for a building to achieve certification: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.

A recent redevelopment and renovation project at Atria Tamalpais Creek included the incorporation of several environmentally-friendly factors, including the use of regionally-sourced materials, a clean air initiative using low-VOC paint and carpet, installation of energy-efficient heating and cooling systems, and integration of recycling programs and adequate green space. To conserve resources and reduce waste, 93 percent of the existing building was reused in the renovation, and more than 576 tons of waste were diverted from the landfill. Low-flow water fixtures are expected to reduce water usage by 30 percent.

“This achievement represents our commitment not only to the residents we serve, but to the world around us,” said Julie Harding, Chief Operating Officer at Atria Senior Living. “We began our green efforts with small changes; now, creating and maintaining environmentally-friendly practices has become part of our day-to-day operations.”

Atria’s carbon-reducing efforts began in early 2009 when the company kicked off its “Go Green with Atria” campaign. The campaign began with the installation of more than 140,000 compact fluorescent lamp (CFL) light bulbs in all Atria communities and at the corporate Support Center. The switch resulted in an energy savings of 37 million kWh of electricity – the emissions-equivalent of taking 6,000 cars off the road.

Other efforts by the company to increase environmental sustainability include newly-functioning solar roofs at two communities in New York and New Jersey, as well as a partnership with Shaw Industries Group Inc., the world’s largest carpet manufacturer, to create a formula for 100 percent recyclable carpeting. To date, approximately 340,000 yards of the recyclable carpet have been installed in Atria communities nationwide, saving 600 tons of carpet from landfills.

Seeing the company’s first solar panel projects and LEED certification achievement come to fruition are indicators of the company’s direction and goals for the future, according to Harding.

“Our commitment is to provide residents with the best possible senior living experience, and increasing our environmentally-friendly practices plays a key role in that commitment,” said Harding. “We are proud of the fact that we are achieving larger, more measurable sustainability goals and doing our part to help ensure clean resources are available for future generations.”

ElderWood Senior Care announced it has signed an agreement to sell almost all of its assets to Post Acute Partners for an undisclosed amount.

Based in Western New York, the company has 18 facilities are located in Western and Central New York, employs more than 3,000 people and cares for over 5,000 patients and residents every year.  Two facilities, ElderWood at Heathwood in Williamsville and ElderWood at Penfield near Rochester are not presently included in the sale said the company.

“I started this business because my parents had a nursing home in East Aurora.  ElderWood effectively is my life’s professional work,” said Robert M. Chur, president and CEO of ElderWood Senior Care. “I am confident that the ElderWood legacy of quality care, highly trained and top-performing employees and extremely satisfied residents and their families will continue in all forms with the new owners.”

Starting in 1978, Chur built ElderWood from one facility in Williamsville into today’s thriving health-care business.  In October 2010, ElderWood Health Care at Maplewood became ElderWood’s sixth skilled nursing, subacute care and rehabilitation facility to win the prestigious American Health Care Association’s Silver Quality Award.

Post Acute Partners is a New York-based owner-operator of post acute healthcare facilities said it plans to work with the current staff and introduce state of the art operational techniques and technology to the properties.

“The opportunity to acquire ElderWood, given it’s excellent reputation for quality of care, well maintained facilities, and high-quality staff, furthers our mission to provide the best in care along the post acute continuum,” said Warren Cole, co-founder of Post Acute Partners.

“I am extremely excited that ElderWood will become a foundation for our operations,” said Dr. Jeffrey Rubin, co-founder of PAP and partner-in-charge of operations and quality of care.  “A company that has already achieved this level and consistency of quality is a rare find.  We intend to continue Mr. Chur’s legacy and to add our own proven innovations in operations and technology to enhance our residents’ experience.”

The purchase still must receive approval from the Public Health and Health Planning Council and could take 18-24 months to complete.

The Essex House Hotel is being converted into a 10,000 square foot full service complex for very low-income seniors and disabled individuals.  Located in Lancaster, CA, the complex will include an adult day healthcare facility offering occupational, speech, and other forms of rehabilitation.

The rehab is being done with funding provided by Torrey Pines Bank, which invested in the CRA Qualified Investment Fund CRA Shares (Ticker: CRAIX), a market-rate community development bond fund.  The Fund earmarked a portion of Torrey Pines Bank’s investment toward the purchase of a Fannie Mae Delegated Underwriting Servicing bond issued to finance the acquisition and rehabilitation of the Essex House Hotel into Arbor Court Apartments.

“Torrey Pines Bank is committed to community reinvestment and revitalization efforts that will help under-served communities,” said Crystal Watkins, senior vice president at Torrey Pines Bank. “We are delighted that the bank’s investment in the CRA Qualified Investment Fund is supporting such a wonderful project.”

In addition, the facility received an Affordable Housing Program (AHP) subsidy of $1 million from the Federal Home Loan Bank of San Francisco.  The AHP facilitates the development of affordable rental housing and home ownership opportunities for very low-, low-, and moderate-income households.

“With the way the economy has been over the last couple years, it is a critical time for complexes like Arbor Court to be available for seniors,” said Barbara VanScoy, Senior Portfolio Manager of the CRA Qualified Investment Fund. “Not only is it affordable but it provides vital ancillary services to seniors such as nursing care, social work assistance, and therapeutic activities.”

Chicago Mayor Richard Daley dedicated a building last week for the city’s 3.5-acre Roseland Senior Campus, which offers supportive living, independent living and intergenerational housing for grandparents raising their grandchildren.

The second building in the Pathway Senior Living campus, dedicated by Mayor Daley, is the Roseland Place Senior Apartments, a 60-unit affordable rental housing development with a 7,000-square-foot Department of Family and Support Services Center on the ground floor.

A green roof and other environmentally friendly features will comprise the $14.6 million development, which will receive the land, $8.6 million in bonds, $1.1 million in loans, and $451,266 in tax credits from the City of Chicago. Other financing includes $340,000 in donations tax credits from the Illinois Housing Development Authority (IHDA) and support from the Department of Housing and Urban Development (HUD) through the Section 202 Supportive Housing Development program.

The Roseland Village Intergenerational Apartments, currently under construction, will provide ten units of affordable rental housing for grandparents raising their grandchildren.

The development will contribute to a push for improving the community, including upgrades and improvements to transportation infrastructure, public buildings including police and library facilities, as well as the addition of several local parks.

“Standing here today, I am pleased to see the progress we have made in transforming vacant land into quality housing for seniors, and creating a catalyst for neighborhood revitalization,” Mayor Daley said. “I am confident that the progress will keep moving forward.”

Read more about the Roseland Senior Campus.

The Ohio Housing Finance Agency (OHFA) Board approved $1.9 million in funding through the Housing Development Assistance Program (HDAP) to provide flexible, low-interest financing for affordable housing developments last week.

The Board also approved $2 million in funding through the Housing Development Loan (HDL) Program. The HDL program provides financial assistance for the development and rehabilitation of affordable housing and is funded through unclaimed funds from the Ohio Department of Commerce.

Two projects related to senior housing are receiving funding through the HDAP and HDL program.  Pontalba Apartments in The Plains received $500,000 from HDAP to construct a new facility that consists of two triplex buildings, with six one bedroom units.

All units will be handicapped accessible and amenities will include ceiling fans, wrought iron windows and dishwashers. This property has a brick exterior, many energy-saving features and 50-year roof shingles.

In addition, the Sylvania Senior Residence received $850,000 HDAP and $2,000,000 from HDL to construct a new 51-unit development for seniors.  Sylvania Senior Residence is the first property to be awarded a Low Income Housing Tax Credit (LIHTC) allocation in the City of Sylvania.

The project will consist of a three-story building and five cottages with 12 units. Each unit will be built to Enterprise Green Community standards. The three-story building will house community spaces including a lobby, computer room, lounge, kitchenette and fitness room. The 12 cottage units will have an attached garage with extra storage space and a patio.