Emeritus Corporation (NYSE: ESC) announced this week that they have entered into a non-binding letter of intent to lease 26 senior living communities from HCP as part of the Sunrise / HCP restructure and settlement agreement.  Emeritus will lease the facilities for an initial term of 15 years with two available extension options of 10 years each and the transaction is scheduled to close in the fourth quarter of 2010. The lease agreements are expected to contain purchase options on 10 of the communities, exercisable beginning in year 11 and extending through the remaining term of the leases.  The communities consist of approximately 3,080 units, comprised of 1,931 assisted living, 607 memory care, 405 skilled nursing and 137 independent living units.

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Healthsense, Inc., which provides wireless sensors and remote monitoring solutions for the senior care market, has closed a round of capital financing led by Radius Ventures, LLC.  Healthsense, which launched its first commercial product in 2006, has developed a large base of customers and demonstrated substantial year-over-year growth for its Wi-Fi sensors, nurse call systems and advanced algorithmically-enabled remote monitoring solutions.  The Radius financing sill support Healthsense and its efforts to grow its sales and marketing efforts and expanding the company’s platform into new markets. 

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Brookdale Senior Living Inc. (NYSE: BKD) has completed two mortgage debt refinancing transactions in the aggregate principal amount of $219.0 million.  Brookdale recently obtained a $181.0 million fixed rate first mortgage loan from Prudential Mortgage Capital Company and a $38.0 million variable rate first mortgage loan from GE Capital, Healthcare Financial Services.  The blended rate of interest on the loans is 5.96% and the proceeds satisfied debt obligations scheduled to mature in 2011 and 2012.

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Sunrise Senior Living, Inc. (NYSE: SRZ) has entered into a settlement and restructuring agreement with HCP (NYSE:HCP) to transition Sunrise from management of 27 HCP-owned senior living communities for an aggregate cash payment of $50 million to Sunrise, and to settle the lawsuits between the Company and HCP pending in Virginia and Delaware.  HCP paid $40 million to Sunrise on August 31, 2010 and expects to pay $10 million in subsequent installments payable on the earlier of the completion of transitioning in the next 12 months.  HCP stated that it will enter into new arrangements for the 27 communities that are anticipated to reflect improved operating margins of the communities and will be making announcements on those arrangements in the coming months. 

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Representatives from the Illinois Housing Development Authority (IHDA) and local dignitaries recently celebrated the grand opening of Thomas Place Fox Lake new development of 100 rental homes for low-income seniors.  The project features 67 two-bedroom, and 33 one-bedroom units for residents who are at least 55 years old with monthly rents ranging from $598 to $837.

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Catholic Health Initiatives (CHI) and Bethesda, Inc. recently announced that the two entities have agreed to the sale of Bethesda, Inc’s subsidiary Consolidated Health Services, Inc to CHI.  Consolidated Health Services currently operates in 30 locations in Indiana, Kentucky and Ohio and includes American Nursing Care, which provides home health services; Patient Transport Services, which handles patient transportation; AmeriMed, which offers home infusion therapy; and Cornerstone Medical, a joint venture which sells durable medical equipment.

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Seniors and Baby Boomers may not be classified as early technology adopters but research is showing that they’re catching up quickly.  A new report from Pew Research Center’s Internet & American Life Project shows that social networking use among internet users ages 50 and older nearly doubled—from 22% in April 2009 to 42% in May 2010.  The research shows that between April 2009 and May 2010:

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Last week, the the Superior Court of the State of California, County of Humboldt, denied the Motion for Mistrial or New Trial on Grounds of Juror Misconduct filed previously by Skilled Healthcare Group, Inc. (NYSE: SKH).  In early July, Skilled Healthcare announced that the jury returned a verdict against the company for $671 million dollars. 

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In an effort to combat fears over the costs of reverse mortgage, FHA is proposing a variation of the traditional reverse mortgage product aimed at seniors looking for options to access home equity with lower costs.  The proposed HECM Saver will have a upfront mortgage insurance premium (MIP) of .01% of the maximum claim amount and will have principal limits 10 to 18% less than the traditional reverse mortgage providing an options for less proceeds in exchange for lower costs.  This solution provides a low cost alternative to a home equity loan for seniors who may not meet the income and asset criteria needed by bank lenders offering home equity lines of credit While final details are still being finalized with FHA and HUD, it is expected that final details on the HECM Saver will be released in late September 2010. 

COLLAGE, a consortium of aging service organizations, is sponsoring a symposium, Integrating Data and Technology to Advance Healthy Aging — Implications for Aging Service Organizations.  The symposium is scheduled for September 27 and 28 in Chapel Hill, North Carolina and will examine what opportunities exist by participating in COLLAGE and using research data to provide better solutions for healthy aging.  Some of the speakers include:

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Financial reform was touted as a way to further protect consumers but it appears that those protections are coming through as increased costs for mortgage transactions.  According to Bankrate’s 2010 Closing Cost Survey, closing costs are on the rise.  The study found the average origination and title fees on a $200,000 mortgage in 2010 totaled $3,741, up 36.6 percent from $2,739 in 2009.  The state with the highest fees in the nation was New York with average costs of $5,623.  Some lenders attribute the increased costs due to increased labor requirements for regulatory compliance because closing costs at the time of application must be more accurate or they risk being penalized. 

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Kindred Healthcare, Inc. (NYSE: KND) announced last week that its subsidiaries have signed a definitive agreement to acquire five long-term acute care ("LTAC") hospitals from Vista Healthcare, LLC ("Vista") for a purchase price of $180 million in cash.  Kindred also announced that its subsidiaries have signed a definitive agreement to acquire three recently constructed nursing and rehabilitation centers in the Dallas-Fort Worth market for a purchase price of $38 million in cash.

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