- Brookdale Senior Living announced it will not be renewing its master lease with Ventas for 120 senior living communities. The master lease expires at the end of 2025. Brookdale cited rent increases of 3% to 10% upon renewal, along with historical negative cash flow from the communities as reasons for not renewing the lease. The 120 communities account for roughly 19% of Brookdale’s portfolio.
- CareTrust REIT has acquired a 46-property long-term care portfolio in the Midwest for $97M. The properties include assisted living and skilled nursing facilities.
- Over the past nine years, over 800 nursing homes have closed across the country according to new data. Reasons cited for the closures include low reimbursement rates and workforce challenges.
- Repurposing vacant health care facilities continues to make headlines. One company in Connecticut is carving out a niche by converting vacant nursing homes into market-rate housing. Between 1995 and 2001, 75 nursing homes closed in Connecticut, creating opportunities for contractors and developers in the state.
- Hall Render attorney Rubin Pusha has launched a weekly publication and a podcast focused on private equity in health care. Sign up for the weekly publication here and listen to the podcast here.
- Hilltop Securities released its 2024 High Yield Impact Survey. Key takeaways include: 1) investors expect rates to widen next year to account for credit nuances; 2) investors expect the highest default rates in senior living, higher education and the skilled nursing sectors; and 3) liquidity is the single most important factor that investors are focused on when making investment decisions.
- Multi-Housing News published an overview of the senior housing sector. Key takeaways include: 1) occupancy has rebounded and is near prepandemic levels; 2) new construction is at historic lows with the fewest number of units under construction since 2014; 3) the active adult sector (late 60s to early 70s) is growing; 4) aging in place is a trend that will continue to impact senior housing based on seniors’ desire to live at home; and 5) affordability remains a challenge for those seniors between the 40th and 80th income percentiles.
- UT Southwestern Medical Center is planning a $177M radiation oncology campus in Fort Worth, TX. The two-story facility will include the city’s first MRI-guided radiation treatment center. The center is designed for residents of Fort Worth who have historically had to travel to Dallas for similar treatments.
- Chippewa Valley Health Cooperative is planning a new hospital in Lake Hallie, WI. The 144K sf hospital will include 48 beds and is expected to cost $158M.
- St. Louis Children’s Hospital and KVC Missouri have teamed up to build a state-of-the-art children’s behavioral health hospital in Webster Groves, MO. The hospital will be designed for 72 beds.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Special thanks to Olivia Allison, undergraduate intern, for her assistance in preparing this article.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
