Senior Living News Wire

The president and CEO of CRL Senior Living Communities, Ari Weinberger, hopes to accelerate his company’s growth with his and new chairman Douglas Cameron’s recent acquisition of a majority stake in the company.

Weinberger, who worked in real estate investment banking for the health care and senior living markets before joining CRL, is looking ahead toward continued expansion and innovation, which his company has been experiencing since he took over in 2009.

“I strongly believe CRL is offering something unique within the senior living market, which is what first attracted me to the organization,” says Weinberger, adding that the equity investment will not affect existing leases or have a direct impact on new contracts going forward. “This investment will enable continued growth through new construction of properties and strategic acquisitions.”

CRL has its main offices in Chicago and Neenah, Wis., and operates 16 independent and assisted living residences in the Midwest; it plans to become a big presence on the Chicago scene. The organization’s third Chicago area community, North Grove Manor Alzheimer’s/Memory Care and Assisted Living in Morton Grove, Ill., is scheduled to open this fall, as the company prepares for an impending rise in the need for senior housing.

“The number of Americans over age 65 is on the brink of exploding, and we foresee a corresponding surge in demand for senior housing, including communities with special expertise in Alzheimer’s care,” says chairman Douglas Cameron. “CRL’s quality management team and holistic approach to wellness put the organization in a great position to benefit from this trend.”

The organization has expanded since 2008 with 10 new or acquired communities, and says its independent living, assisting living and Alzheimer’s/memory care communities are known for their Stimulation Pillars that emphasize the social, physical and nutritional needs of residents.

Written by Alyssa Gerace

The Oaks, an assisted living facility for low-income seniors, has recently been completed in Mena, Arkansas, about a decade after the project’s inception. A $100,000 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB) and member institution Bank of the Ozarks was enough to complete funding and finish construction for the facility.

“The various pieces of the funding puzzle really came together to complete this tremendous senior living center here in Mena, Arkansas,” said Mena Mayor George McKee. “This is the culmination of almost 10 years of a concerted effort of many individuals and entities to provide necessary living amenities for the income-challenged senior segment.”

Residents of the facility’s 30 units will be provided with access to transportation, meals, activities, laundry, medical, and other services that will fill a vital need in the community for the senior population.

The Oaks, dreamed up ten years ago by members of Ouachita Seniors and Retirees, Inc., a nonprofit foundation established to focus on the needs and futures of seniors and retirees in the Polk County area, finally came to fruition thanks in part to AHP funding from FHLB Dallas and Bank of Ozarks.

“It’s hard to put into words a dream we’ve had for more than 10 years,” said Dr. Richard Black, president of Ouachita Seniors and Retirees, Inc. “We’ve been working on this for so long that the culmination of this dream is beyond words.”

FHLB Dallas says it returns 10% of its profits to the communities served by its member institutions in the form of AHP grants each year; these grants, says the bank, are used to purchase, construct, and/or rehabilitate single-family, transitional, and multifamily projects for very low- to moderate-income families. The bank awarded $18.5 million in grants in 2010 and plans to reveal next year’s grant recipients this summer.

Written by Alyssa Gerace

The Ensign Group (NASDAQ: ENSG) subsidiaries have agreed to acquire nine skilled nursing and assisted living facilities Careage Management, LLC for an undisclosed amount.

Expected to close in July 2011, the facilities include 549 skilled nursing beds and 72 assisted living units. The pending transaction also includes Careage Home Care, a home health agency based in Cherokee, Iowa.

“Having had the opportunity to tour several Ensign facilities and visit with their staff and residents, we determined that Ensign best shares our philosophy of resident-centered care and providing a loving, dignified, home-like environment within the communities we serve,” said Dan Myers, President and CEO of Careage.

Careage co-owner Greg Grupp noted that Ann Myers, head of Careage nursing and quality assurance, and Dan Myers will remain with the incoming Ensign operators for an indefinite period to ensure a smooth transition.

“We are anxious to build on Careage’s outstanding reputation for resident care and patient outcomes,” said Mike Dalton, President of Bandera Healthcare, Inc., the Ensign subsidiary overseeing the transition. “We admire the great work done by the Careage owners and the incredible Careage staff, and we look forward to working with them as we strive to strengthen partnerships with families and residents to provide quality care.” He added that Ensign expects the Careage operations to be accretive to Ensign’s consolidated earnings in 2011.

Ensign said it hopes to close the acquisition in July 2011.

Emeritus Corporation (NYSE: ESC) completed the acquisition of 24 assisted living communities with 1,867 units for approximately $99 million.

The facilities were part of a joint venture between the company and affiliates of Blackstone Real Estate Advisors.  Previously, Emeritus owned a 19% interest and Blackstone had 81% interest and had been operating the communities since late 2006 under management agreements for a fee equal to 5% of collected revenues.

The portfolio was valued at $310 million, and the net purchase price to acquire Blackstone’s 81% interest in the joint venture was approximately $99.0 million. The purchase price was funded through a $59.0 million increase in mortgage debt to $220.0 million, and the balance of $40.0 million from cash on hand. In addition, loan fees and closing costs were approximately $3.0 million.

Emeritus currently operates 482 communities in 42 states representing capacity for approximately 43,200 units and approximately 50,200 residents.

The Ensign Group (NASDAQ: ENSG) moved into Nevada with the acquisition of the Grand Court Las Vegas, a 152-unit assisted and independent living facility in Las Vegas, Nevada.

Effective June 1, 2011, Ensign said it paid an undisclosed amount of cash for the facility, which as of closing, had an occupancy rate of approximately 85%.

“We are excited to extend our growing footprint into Nevada, and look forward to being a solid contributor to the Las Vegas area’s vibrant healthcare community,” said Christopher Christensen, Ensign’s President and Chief Executive Officer. Noting that this facility has an excellent clinical history, a stable long-term staff and an excellent reputation in the community, he called it “the perfect facility to establish Ensign’s presence in Nevada.”

Ensign said the facility was acquired from a well regarded long term care company that had operated it for several years.

“We are anxious to build on the former owner’s outstanding reputation for quality care and patient outcomes,” said John Gurrieri, President of the Ensign subsidiary overseeing the transition. “We admire the great work done by the incredible team here and look forward to working together as we continue to strengthen our partnerships with patients and families to provide superior care,” he added.

The company added that it’s on the hunt for for other other potential acquisitions of well performing and struggling long-term and short-term care operations across the United States.

The acquisition brings Ensign’s growing portfolio to 87 healthcare facilities, 58 of which are Ensign-owned, three hospice companies and two home health businesses.

The list of the largest senior living providers is out and Emeritus Senior Living was named the largest assisted living provider, with 46,777 resident capacity according to the Assisted Living Federation of America (ALFA).

The next largest operators are Sunrise Senior Living and Brookdale Senior living with 28,131 and 27,568 resident capacity respectively.

The rankings include the top 80 private and publicly-traded senior living companies and provides a good look at the players in the senior housing sector.  This year, the list also includes information on independent living and memory care communities.

“The senior living business continues to grow and evolve to serve the growing number of seniors and their families seeking residential services and care for themselves or loved ones,” said Richard P. Grimes, President and CEO of the Assisted Living Federation of America, “The Largest Senior Living Providers list fills an important informational gap for senior living executives and is a powerful tool for everyone with a stake in the senior living industry. Many of our members have now embraced senior living, so as a result ALFA has also broadened its advocacy and business excellence initiatives to serve senior living, inclusive of assisted living, and the seniors and families our members serve.”

View a copy of the list.

Construction on Deer Trail Assisted Living, a new 57 apartment, $9 million community in Rock Springs, Wyoming got underway last week.

The community is located on 4.5 acres adjacent to the Young at Heart Senior Center and will offer services to people 62 years of age and better, it will be licensed by the Wyoming Department of Health under Level II licensure which includes Alzheimer’s care.

Lenders include four regional banks, Rock Springs National, 1st Bank of Rock Springs, Bank of Commerce of Rawlins and Jonah Bank of Wyoming.

Kiewit Building Group, LLC, the general contractor for the project, broke ground in mid-April on the single story 43,000 square foot building based upon a prototypical design refined by Kephart Architects.The building will be comprised of two residential neighborhoods – forty four (44) assisted living and thirteen (13) memory care apartments.

A full range of amenities will include multiple life enrichment spaces, dining rooms, bistro, card/game rooms, theater/chapel/library, salon, spa, beauty and barber shop, laundry, and private courtyards. Memory care services will be provided in a secured neighborhood designed for people with dementia. The community will provide scheduled transportation and a wide variety of optional services.

A Physical/Occupational Therapy program is being planned.Encore Living Group, LLC will provide management services for Deer Trail. With over 40 years of development and operational experience throughout the United States, Encore brings a well-qualified approach and team to the operation of the community. Encore creates welcoming communities, in a residential environment, with consistent and value oriented convenience services that support independence and connection between people. Fun and life enriching programs are at the heart of the community.

Under Wyoming state regulatory guidelines, Deer Trail staff will be trained in providing exceptional service in the care and supervision of persons living with cognitive impairment. Encore has a simple and straight forward value system – a complete respect for the communities and people served. This value system engenders a compassionate and successful management philosophy:We enjoy this business, the people and families we serve. Encore is committed to “Carefully –Managed – Community”

Some seniors are opting to stay in their homes and wait for their home equity to return, rather than moving on to senior living facilities, says a recent report from a Massachusetts newspaper. Several assisted living and senior housing facilities have recorded low occupancy levels due to the economic downturn and a trend in seniors who are using in-home care rather than moving out of their homes, in order to wait out the housing recovery, the report finds.

An article in the Massachusetts newspaper the Milford Daily News cites several instances of senior housing facilities with falling occupancy rates since 2008. Most operators of the housing facilities say seniors are staying in their homes longer and are opting for in-home care rather than assisted living or nursing care. The decision often falls on the families and children of the seniors, who are opting to wait out the housing downturn and hope for home equity to return, rather than lose the value of their homes.

“Rather than sell their home, which is typically a senior person’s major asset, they’ve chosen to increase the senior person’s home care rather than moving and selling their home during a difficult time in the housing market,” Betsy Willard, director of a Wayland, Mass.-based Sunrise assisted living facility told the Milford Daily News.

“What we saw was some of our folks were coming to us a little bit later than normal,” another assisted living operator told the paper. “I think families were a little more conscious of mom’s investments and financial manners.”

View the Milford Daily News article.

Written by Elizabeth Ecker

Wichita Business Journal is reporting that senior living projects are adding millions of dollars to its local economy.  At least five major area senior housing projects have been announced in recent months.

“It’s a testament to the strength of the market,” says Pat Ayars, a partner in Oxford Development Holdings, which has projects in the works for an area near NewMarket Square and in Derby.

Physicians Development Group told the Wichita Business Journal about plans for a $15.5 million assisted living and memory care facility in the Lillie Medical Park near Kellogg and Maize. And Legend Senior Living also is looking to make a big splash with two new building projects — one in east and one in west Wichita

The projects are leading to a boon for area general contractors and architecture firms.

The work comes during what has otherwise been a couple of down years for the local construction market.

Senior living projects adding millions of dollars to Wichita economy

Affiliates of Senior Lifestyle Corporation and AEW Capital Management, L.P. (AEW) announced the acquisition the Carlisle Palm Beach, an in independet and assisted living community in Florida.

The acquisition is the sixth Florida based location it manages and one of 85 properties across the country. AEW acquired the property on behalf of AEW Senior Housing Investors, LP.

“The Carlisle Palm Beach is an excellent addition to our family of communities,” said Jon DeLuca, Chief Executive Officer. “The community is prominently located steps from the ocean with great views and extensive amenity space that reflects the exceptional lifestyle we are committed to offering our residents.”

Opened in 1999 and located just south of Palm Beach, the property features 250 independent living apartments and 60 assisted living and extended congregate care residences. Amenities include two dining rooms, a bistro, game rooms, cinema, salon, spa, fitness center, nine-hole putting green and art studio, as well as valet parking and dog-walking services.

“We plan on beginning interior and exterior capital improvements to the property that are largely cosmetic in nature,” said DeLuca. “At the same time, we will introduce our signature hospitality-focused service, dedicated care and wellness activities to enhance the experience of The Carlisle’s residents.”

“We are also excited about working with our new joint venture partner AEW,” added DeLuca. “AEW has been great to work with and shares our passion for providing the highest quality care and high-end services to our residents.”

WIth funding from Jonah Bank of Wyoming, Encore Partners will soon begin constructing a new 57 apartment, $9 million dollar assisted living community in Rock Springs, WY.

Located on 4.5 acres adjacent to the Young at Heart Senior Center and will offer services to people 62 years and older and will be licensed to provide Alzheimer’s care.

Participant lenders include three regional banks, Rock Springs National, 1st Bank of Rock Springs, and Commerce Bank of Rawlins. Kiewit Building Group, LLC, the general contractor for the project, will break ground in mid-April on the single story 43,000 square foot building; Kephart of Denver, Colorado is the architect of record. The building will be comprised of two residential neighborhoods – forty four (44) assisted living and thirteen (13) memory care apartments.

A full range of amenities will include multiple life enrichment spaces, dining rooms, bistro, card/game rooms, theater/chapel/library, salon, spa, beauty and barber shop, laundry, and private courtyards. Memory care services will be provided in a secured neighborhood designed for people with dementia.

The community will provide scheduled transportation and a wide variety of optional services. A Physical/Occupational Therapy program is being planned. Encore Living Group, LLC will provide management services for Deer Trail. With over 40 years of development and operational experience throughout the United States, Encore brings a well-qualified approach and team to the operation of the community.

Encore told SHN it expects the location to open for residents in late December 2011.

SK3 Group (PINK SHEETS:SKTO) announced it has signed a definitive agreement to acquire Northwood’s Village Assisted Living, LLC of Tomahawk, Wisconsin for an undisclosed amount.

The planned assisted living community will be housed in the building and grounds of the former Sacred Heart Hospital. The building and parking areas of the proposed Northwood’s Village campus encompass more than one city block and includes approximately 100,000 square feet under roof.

A Community Development Block Grant applied for by the Lincoln County Economic Development Agency identified the facility as an excellent candidate for redevelopment.  While the majority of the space will be dedicated to quality assisted living facilities, plans for Northwood’s Village also include an international travel nurses agency and training center, associated community services, and an Emergency Disaster Center.

“Northwood’s business plan is aligned well with SK3′s mission to include the most dynamic healthcare services and facilities, particularly those responsive to the needs of our senior population,” said Kelvin Pan of SK3′s.  ”Northwood’s Village will allow us to expand our services reach into a new Midwestern market while supporting the establishment of a vertically-integrated assisted living system on a scale never seen before in the region.”

The acquisition is the fourth addition to SK3′s growing portfolio of healthcare businesses which recently purchased W&M Medical Management, Inc., PRN Registry, and HealthStaff Training Institute.

Capital Senior Living (NYSE:CSU) sold its 5% interest in four senior living communities to Health Care REIT, Inc. (NYSE:HCN) for $17 million on Monday.

As part of the sale, CSU leased the communities from HCN.

“We are extremely pleased with the returns the Company and its joint venture partner received in this transaction,” said Lawrence A. Cohen, Chief Executive Officer of the Company.  “Proceeds from this transaction and our available cash will provide equity for direct acquisitions of senior living communities to strategically enhance the geographic concentration of our existing operating platform.”

The Spring Meadows properties have approximately 625 units with a combined resident capacity of 758 said the company.  The properties include two independent and assisted living communities in Illinois, one independent and assisted living community in Connecticut and one assisted living community in New Jersey. Current occupancy of the combined portfolio is 82.6%, as two of the communities just completed conversion of 28 vacant units to memory care units and are awaiting final state approval to move residents into the newly-converted units.

According to Lawrence, CSU plans to use the cash from the transaction to provide equity for senior living community acquisitions.  ”We are actively pursuing a number of opportunities and are conducting due diligence on a few of the most attractive transactions,” he said.

From an original investment of $1.3 million, CSU received proceeds, including incentive distributions, from the sale by the joint ventures of approximately $17.0 million.  After closing costs and taxes, the company received net proceeds of approximately $11.5 million from the transaction.

HCP (NYSE:HCP) said it closed on the acquisition of 334 post-acute, skilled nursing and assisted living facilities of HCR ManorCare for $6.1 billion in cash on Friday.  As part of the deal, HCP entered into a long term triple-net master lease where HCR ManorCare will continue to operate the facilities.

The company also paid $95 million for a 9.9% equity interest in HCR ManorCare at closing.  Based in Toledo, OH, HCR is a provider of provider of short-term post-acute services and long-term care.

In March, HCP’s Vice President and Chief Financial Officer, Thomas M. Herzog, announced his resignation, effective May 15, 2011 to pursue new opportunities.

The acquisition will be a nice addition to its portfolio of investments which as of December 31, 2010, includes interests in 672 facilities among the following segments: 251 senior housing, 102 life science, 253 medical office, 45 post-acute/skilled nursing and 21 hospital; and (ii) $2.0 billion of mezzanine and other secured loans.

Marcus & Millichap Real Estate Investment Services announced it sold Elk Run Assisted Living Facility for $7 million to Augustana Senior Care Corporation on Wednesday.

Located in Evergreen, CO, the property was constructed in 2002 and sits on 5.5 acres of landscaped grounds at the foothill of the Rocky Mountains.

“We are pleased to have brought this transaction to a successful conclusion,” said Jacob Gehl of Marcus & Millichap’s Chicago Downtown Office. “This represents a favorable outcome for the Elk Run Investors. Augustana has an excellent reputation for providing high quality care to seniors within the State of Minnesota and we are excited to have been able to assist them in expansion into Colorado.”

The property has 62 units for assisted living said the company.  Based on the purchase price, the cost per unit came in at $112,000.

The buyer, Minneapolis based Augustana Senior Care Corporation is a non-profit owner of senior housing with communities throughout the State of Minnesota.

In other M&M news, the group sold Wynwood of Mandeville earlier this week for $10.4 million to Emeritus Corporation, a publicly-traded senior housing owner and operator based in Seattle, WA.

The facility is an 84-unit assisted living facility located in Mandeville, LA.  Constructed in 1998, Wynwood of Mandeville sits on 6.32 acres of landscaped grounds boasting excellent visibility off the Lake Ponchetrain Causeway, the famous bridge which connects New Orleans to the rest of the state.