The healthcare industry will remain in demand in the new year, with healthcare reform heavily influencing the sector, according to a Jones Lang LaSalle report on Healthcare Real Estate Conditions in 2012. It will be a year of hospital mergers and acquisitions as organizations seek to create operational efficiencies and ways to rationalize their footprint […]
Category: REIT
The seniors housing and care industry was in recovery mode in 2011 as the construction pipeline leveled off and occupancy rates rose, and while this creates development opportunity going forward, industry analysts don’t expect to see substantial amounts of new construction in 2012. The sector saw slight improvement in some fundamentals such as occupancy, revenue, […]
On Dec. 29, 2011, Sunrise Senior Living, Inc. (NYSE:SRZ), Sunrise Senior Living Services, Inc., and Sunrise Continuing Care, LLC closed the transactions contemplated by an Agreement Regarding Leases with Marriott International, Inc. (NYSE:MAR), Marriott Senior Holding Co. and Marriott Magenta Holding Company, Inc. relating to a portfolio of 14 leases for senior living facilities, according […]
Ventas, Inc. (NYSE:VTR) and Cogdell Spencer Inc. (NYSE:CSA) announced on Dec. 27 that the Boards of Directors of both companies have approved a definitive agreement under which Ventas will acquire Cogdell and its 72 high-quality medical office buildings in an all-cash transaction. At closing, Ventas’ investment, including its share of debt, is expected to approximate […]
REITs (real estate investment trusts) and refinances were two key components in the senior housing and care finance game in 2011, with billions of dollars in M&A activity and soaring loan endorsement volume from the Department of Housing and Urban Development (HUD). Although rumors of an impending construction boom are swirling thickly around U.S. Census […]
American Realty Capital II, LLC offered to sponsor Grubb & Ellis Healthcare REIT II (GEHRII) in an unsolicited bid submitted to the REIT’s board of directors on Nov. 10, 2011. The bid, which the board declined on Nov. 16, also included ARC’s affiliates serving in advisory and dealer-manager roles to the REIT. “Given our experience, […]
Senior Housing Properties Trust (NYSE:SNH) is days away from closing on its acquisition of eight senior living rental communities operated by Vi as Classic Residence, formerly known as Classic Residence by Hyatt. The company said it plans to pay approximately $379 million for the eight properties, including $132 million of assumed mortgage debt. SNH originally agreed to […]
Although real estate investment trusts (REITs) face higher risks when entering into a RIDEA structure with senior housing operators, it’s risk that’s well thought out, and the management structure will become increasingly important going forward, analysts say. RIDEA, which comes from and is an acronym for the REIT Investment Diversification and Empowerment Act of 2007, […]
Despite the dominance of government assisted financing and Real Estate Investment Trusts (REITs) in senior housing, more traditional balance sheet lending is coming back after the collapse of the market in 2007. While Real Capital Analytics, which tracks industry statistics, did not have specific data on the prevalance of bank financing in the market to […]
The failure of the “Supercommittee” to reduce the federal deficit by $1.2 trillion over the next 10 years could lead to an across-the-board 2% cut to all government agencies, putting more pressure on senior housing operators and slowing transaction activity. The industry was hit with an 11.1% reduction in Medicare reimbursement rates for skilled nursing […]
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