CCRCs: Buying, Selling and Valuing
Recorded Thursday, May 23, 2013 at 1:00 p.m. (Eastern)
When the Great Recession hit, and housing prices crashed, and seniors either couldn’t sell their homes or not at prices they had grown to expect, many CCRCs that were opening or half complete ran into financial difficulties as census growth and pre-sales didn’t go as planned. Within a few years, there were some people who began to write off the CCRC sector as a thing of the past, an old model with the entrance-fee model no longer workable in the new housing market environment. There were defaults, distressed sales and bargain prices, at least compared with the original cost or replacement cost.
Has the market changed since the depths of the Great Recession? The answer is yes, and while there are still some distressed CCRC sales on the market, the environment is much better with the housing market gaining strength and perhaps a pent-up demand for what the CCRC product offers. From a financial perspective, CCRCs are one of the most difficult, and controversial, of the seniors housing property types to analyze. There are entrance-fee communities, straight rental CCRCs and hybrids that offer residents a choice, but with different monthly fees. And now there are many different refund options as well to complicate the valuation process. Those announcing the death of the entrance-fee CCRC model were premature, to say the least.
This educational offering has been approved for 1.25 credit hours by the National Association of Long Term Care Administrator Boards (NAB). Upon webcast approval and enrollee’s successful completion of the test, Irving Levin Associates, Inc. will issue a NAB certificate of completion for students to issue to their state licensure boards.
AT A GLANCE
|DATE:||Recorded Thursday, May 23, 2013|
|TIME:||Whenever it's convenient for you. A recording will be made available in your membership account.|
|PLACE:||Anywhere you can connect online|
|COST:||Buy now for $193! If you are a subscriber to our M&A webcast series you are eligible for this webcast.|
|REGISTERING IS EASY:|
|2.||Call toll-free: 1-800-248-1668|
BUY TODAY and learn vital details about the state of the CCRC market from our panel of leading industry experts — without ever having to leave your desk:
|Is there such a thing as a cap rate for CCRCs?|
|How do refundable entrance-fee liabilities impact the purchase price?|
|What is the best ratio of IL, AL and SNF beds for a CCRC?|
|How does the size of the campus impact the value and purchase price?|
|What is the best way to finance a CCRC acquisition?|
|What’s the primary concern of a buyer when looking at a CCRC purchase? How about the seller?|
|PLUS...your chance to ask our panel of experts any questions about buying, selling or valuing hospitals.|