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.
 

Webcast
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:
1. Online
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.


 

 

Panel of Experts:

Stephen Monroe
Stephen M. Monroe is a respected and often quoted industry leader. He is the managing editor and partner at Irving Levin Associates, Inc., a research and publishing firm founded in 1948. The firm specializes in the seniors housing and health care investment markets and delivers timely market intelligence to subscribers through financial newsletters, acquisition reports and databases. Mr. Monroe is the editor of The SeniorCare Investor, the Read More
Editor, The SeniorCare Investor
Paul Brand
Paul Brand is a graduate of Robert Morris College in Pittsburgh where he majored in accounting with a minor in mathematics.  Paul was hired as Concordia’s first full-time Controller in December 1988 and was named the organization’s first Chief Financial Officer in February 2000.  Paul previously worked for three years for the Big Eight accounting firm of Deloitte Haskins & Sells in Pittsburgh.  He passed the CPA Read More
Treasurer and CFO, Concordia Lutheran Ministries
Allen McMurtry
Allen McMurtry is Executive Managing Director, Principal of Cassidy Turley’s Senior Housing Group. Allen has exclusively represented sellers of Senior Housing properties across the United States since 1986. He has represented numerous types of owners, including publicly traded companies, institutional real estate investment advisors, lenders, bond trustees, not-for-profi ts and individual owners. For these owners, Allen has sold 136 Senior Read More
Executive Managing Director, Principal, Cassidy Turley
David Reis, CEO of Senior Care Development, LLC
David Reis is the Chief Executive Office of Senior Care Development, LLC (SCD) which was established in 1988.  For the past 25 years, David Reis has developed, and/or has purchased continuing care retirement communities (CCRC's) in excess of $1 billion dollars and has also developed and owned retirement-oriented projects that span the continuum of care from independent living to assisted living to nursing homes. In the past two years Read More
CEO, Senior Care Development, LLC
David Salinas
David Rey Salinas is a Partner and Member of HealthTrust, LLC - a valuation and consulting firm formed in 2003. He presently oversees offices in Boston and Los Angeles and has over 25 years of real estate valuation experience, of which 19 years have been exclusively in the healthcare and senior living industry. In 1994, David began specializing in the appraisal of healthcare properties by opening the Boston office of Gulf/Atlantic Valuation Read More
Partner, HealthTrust LLC.