Senior Housing and Assisted Living

AgeSong celebrated the opening of Bayside Park, the company’s newest assisted-living senior communities in Emeryville, California last week.  The five-story 116,366 square-foot residential complex offers independent and assisted-living apartments for senior adults and is AgeSong’s fifth community for elders in the Bay Area.

Bayside Park features 125 studio and one-bedroom apartments within walking distance of Emeryville’s vibrant retail and entertainment district and with easy access to public transportation. In addition to the independent living program, AgeSong at Bayside Park offers five levels of care and specialized programs that include expressive arts, hospice care, assisted living and medication management support, forgetfulness (Alzheimer’s/Dementia) care, gero-wellness, respite care and hospice support.  It was designed by Kava Massih Architects, Berkeley, Calif., and built by James E. Roberts-Obayashi Corp., Danville, Calif.

“AgeSong’s nationally recognized approach to building design and programming is reflected throughout the building and redefines the concept of “eldership” with architecture and landscaping that affirm the residents’ dignity and wisdom,” said Massih.

“Our goal in developing this unique living environment is to transform attitudes toward aging and focus not only on the physical needs of elders, but on their emotional and spiritual needs as well,” said Nader Shabahangi, PhD, CEO of AgeSong. “By integrating elders in the community, offering them therapeutic expressive arts activities and providing care in an environment that helps residents feel safe, Bayside Park offers a unique model of care that allows elders to enjoy a vibrant life.”

What’s in store for housing during the next 10 years?  John McIlwain, Senior Resident Fellow at the Urban Land Institute recently released “Housing In America:  The Next Decade”.  The paper looks talks about the consequences of the housing bust such as an increase in renters and a lack of home appreciation in the immediate future.  The last segment of the paper examines seniors and boomers and other groups of the US population that will affect housing trends during the next decade.  After reading the paper, it is clear that the next few years represent challenges for the broader market and that baby boomers are not immune to the broader issues and are not going “save” or “rescue” the housing market as some press have been touting. 

The paper addresses three parts:

• The current state of the market.
• The need to re-establish the private market residential finance system which is now virtually all supported by the federal government through the Federal Reserve, Fannie Mae, Freddie Mac or the Federal Housing Administration (FHA).
• Emerging long term trends including seniors, generation Y and immigrants

Urban Land Institute – “Housing In America:  The Next Decade”

National Health Investors, Inc. (NYSE:NHI) recently announced that completed the purchase of six Florida skilled nursing facilities from Care Foundation of America, Inc. (CFA) for a total of $67 million and that it closed on a $100 million unsecured revolving credit facility to fund new healthcare real estate investments. 

The transaction, which was previously announced, is for facilities that are leased to affiliates of Health Services Management, Inc. for $6.2 million annually, plus a 3% escalator starting at the beginning of the third lease year. The lease expires in 2014 and the tenant has a 3 year optional renewal term. The facilities total 780 beds and have been part of NHI’s mortgage loan portfolio for 16 years. The purchase resulted in the dismissal of pending litigation between NHI and CFA. The earnings before interest, taxes, depreciation, amortization and rents (EBITDAR) for these facilities for the trailing twelve months ended November 30, 2009 totaled $10.6 million and provides a lease coverage ratio of 1.71. NHI will fund the purchase with the full satisfaction of the $23.3 million in principal and interest on a mortgage note due to NHI from CFA, $29.7 million in cash deposits and $14 million in advances from NHI’s revolving credit facility.

The new credit facility, which was provided by Regions Bank as agent and Pinnacle National Bank as a participating bank, bears interest at a margin of 250 basis points over LIBOR with a floor of 1% and matures in February 2011.

Justin Hutchens, NHI President and COO stated, “This new credit facility provides NHI the available capacity and flexibility to make additional high-quality real estate investments in 2010. Additionally, NHI will continue to review long term capital strategies for its new investments that will maximize returns to our shareholders.”

The Lakewood Housing Authority, dba Metro West Housing Solutions, announced that it will receive a grant of $500,000 in HOME funds for the construction of Senior Residence at Creekside West. This is Phase II of the award winning Residence at Creekside Community, a 118 unit senior development built in 2007 (also supported by CDOH funds). The new building will be directly west and adjacent to the existing facility. This new 83 unit property will offer independent living for seniors 55 and over, on a 1-acre site in central Lakewood. It will be a 4-story wood-frame building with two elevators, underground parking, and an emphasis on energy efficiency and sustainability, including passive solar, solar PV and solar thermal. The project’s 83 units will be affordable at 30%, 50% & 60% of the area median income.