Atria Senior Living Group announced renovation plans for Atria Sunnyvale, a local independent and assisted living community, that will create a Life Guidance® memory care neighborhood for residents living with Alzheimer’s and dementia. Set to begin in March 2010, the multi-million dollar renovation will also include aesthetic upgrades to the community’s overall interior.  Atria’s Life Guidance communities are secure neighborhoods designed specifically for residents living with Alzheimer’s disease or other memory impairments that includes two secure courtyards with outdoor seating and walking paths.   The 27 apartment Life Guidance neighborhood upgrades will include new carpet and paint as well as new bathroom fixtures, cabinets and surfaces.  

“Our new Life Guidance neighborhood will provide older people, living with memory impairments, an opportunity to live in a home-like setting designed with dignity and safety in mind,” said Zeinab Donner, executive director of Atria Sunnyvale. “It will also help residents retain a level of independence they otherwise wouldn’t achieve anywhere else.  I think that’s what people are really struggling to retain as they age,” continued Donner.  “This expansion reflects what we are all about at Atria, and that is providing the highest quality of life possible in the most comfortable and pleasant surroundings.”

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Why is it so difficult to attract capital in the senior housing industry?  Clearly it’s not the demographics, the demand or the oversupply of new product.  It’s the competition that the capital faces.  Many investors are waiting for the bigger, better deal with greater returns with other opportunities on the horizon.  When speaking with private equity and well-heeled investors lately, they are moderately interested not because they don’t feel there is opportunity; it is that the returns are not high enough compared to the potential opportunities in the distressed commercial markets. 

Where ever you look or read, the majority of people are under the impression that there are more price declines ahead for the commercial real estate market.  Just look at the February Congressional Oversight Report entitled, “Commercial Real Estate Losses and the Risk to Financial Stability”.  The report, while lengthy and somewhat academic, provides extensive detail on the risks associated with the current state of commercial real estate and is somewhat alarmist.  The report states:

“There is a commercial real estate crisis on the horizon, and there are no easy solutions to the risks commercial real estate may pose to the financial system and the public. An extended severe recession and continuing high levels of unemployment can drive up the LTVs, and add to the difficulties of refinancing for even solidly underwritten properties. But delaying write-downs in advance of a hoped-for recovery in mid- and longer-term property valuations also runs the risk of postponing recognition of the costs that must ultimately be absorbed by the financial system to eliminate the commercial real estate overhang.”

It’s not that investors aren’t interested in senior housing and senior living, the return on investment (ROI) just doesn’t look as attractive against the opportunities and possibilities from the distressed commercial real estate sector.

http://cop.senate.gov/documents/cop-021110-report.pdf

Patient Placement Systems (PPS) announced that Greystone Healthcare Management has rolled out the Web-based Referral Management System software to automate marketing and admissions for its 25 skilled nursing facilities in Florida, Indiana and Ohio.  Greystone’s personnel were trained and the system was rolled out to all of its facilities within three weeks of the project kick off.  The web-based system provides multi-location nursing home operators and managers with comprehensive data into the sales and admissions process.

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ACTS Retirement-Life Communities Inc., (ACTS) and the Peninsula United Methodist Homes, Inc. (PUMH) and Heron Point of Chestertown (Heron Point), recently announced the signing of agreements in which PUMH and Heron Point have agreed to become affiliates of ACTS effective May 1.  ACTS is the nation’s largest not-for-profit owner, operator and developer of CCRCs. Through a combination of organic growth and acquisitions, ACTS has grown from a single location in Fort Washington, PA in 1972, to 23 locations in eight states when the PUMH and Heron Point affiliations are completed.

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Trying to minimize the costs of care for parents or loved ones?  You might be saving costs but your employer is not.  Employees in the U.S. who are caring for an older relative are more likely to report health problems like depression, diabetes, hypertension or heart disease, costing employers an estimated average additional health care cost of 8% per year, or $13.4 billion annually, according to the MetLife Study of Working Caregivers and Employer Health Care Costs. The report, produced by the MetLife Mature Market Institute® with the National Alliance for Caregiving in conjunction with the University of Pittsburgh Institute of Aging, also found that younger caregivers (ages 18 to 39) cost their employers 11% more for health care than non-caregivers, while male caregivers cost an additional 18%. The survey found that:

• Younger caregivers (18 to 39 years old) demonstrated significantly higher rates of cholesterol, hypertension, COPD, depression, kidney disease, and heart disease in comparison to non-caregivers of the same age.
• Employed caregivers find it more difficult than non-caregivers to take care of their own health or participate in preventive health screenings. For example, women caregivers were less likely to report annual mammograms than non-caregivers.
• Employees with eldercare responsibilities were more likely to report missed days of work. Overall, 10% of caregivers missed at least one day of work over the past two weeks because of health issues compared to 9% of non-caregivers. Differences were mostly driven by the much higher absenteeism among younger caregiving employees, age 18 to 39.
• It also found that eldercare may be closely associated with high-risk behaviors like smoking and alcohol consumption.

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We are pleased to announce a new feature, Senior Housing News Weekly, which is an email summary of the week’s most popular articles focusing on more consumer content.  The feedback that we’ve received from our consumers and business professionals is that they enjoy our newsletter but don’t need it on a daily basis but would choose to get it weekly.  Published for Friday delivery, we’ll deliver the top 5 or 6 article summaries.  You can subscribe to both or either one.  If you’re interested in advertising, drop us a line at info@seniorhousingnews.com

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Crain’s Chicago Business recently ran an article entitled, “Upscale senior home The Clare averts default after cancellations soar”, that discusses some of the challenges and strategies that the high-profile continuing care retirement community is currently facing. The high-profile, 52 story high rise has attracted national attention for its lawsuit arguing it should be exempt from property taxes and it tapping reserves to make bond payments in 2009.  Look for more on The Clare in the future profiled here at Senior Housing News.

http://www.chicagobusiness.com/cgi-bin/article.pl?articleId=33074

National HealthCare Corporation (NYSE Amex:  NCA, NHC.PRA), a national long-term care operator, announced fourth quarter 2009 income of $4.9 million dollars or .37 per share compared to $2.7 million or .21 cents per share.  Revenues for Q4 increased 4.2% and operating revenues for the full year increased by 5.5%.

NHC operates 76 long-term health care centers with over 9,000 beds and 33 home care programs, seven independent living centers and 15 assisted living communities.

For the full earnings release for NHC, click http://www.nhccare.com/presspdf/20100302.pdf

The spring selling season is getting underway and many American homeowners are still expressing frustration over the reality of home prices versus their own expectations as part of the sales process. The Zillow Q4 Homeowner Confidence Survey shows that American homeowners’ confidence in their own homes’ values during the fourth quarter fell to the lowest level in seven quarters, with just one in five (20 percent) believing their own homes’ values increased during 2009.  The results of the survey show the “not my home” / denial sentiment that was once prominent has now faded.  According to the survey, last year nearly half (47 percent) of homeowners believed values in their local market would decrease in the next six months. However, when asked about their own home, fewer than one in three (30 percent) believed their own home’s value would decrease.

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The U.S. Department of Health and Human Services (HHS) announced a new funding opportunity for national public or private non-profit organizations to apply for $10 million in cooperative agreements to help communities decrease smoking and obesity, increase physical activity and improve nutrition.  HHS is seeking national organizations to provide expert guidance to communities, help sustain prevention efforts when recovery act funding ends, and foster a national movement toward prevention by implementing key practices across their networks and systems.

Communities Putting Prevention to Work will change systems and environments-for example, improving access to healthy foods and opportunities for physical activity-and putting into place policies that will promote the health of populations. Funded by the American Recovery and Reinvestment Act of 2009 (ARRA), the $10 million in available funds will be awarded to national organizations through a competitive agreement process.  The application deadline is April 19, 2010 and for more about the Communities Putting Prevention to Work- Leveraging National Organizations program please visit: http://www.hhs.gov/ophs/funding/index.html

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Assisted Living Concepts, Inc. (“ALC”) (NYSE:ALC) saw fourth quarter net income of $4.3 million, a 43% increase over same period results in 2008.  Revenues in the fourth quarter of 2009 increased from the fourth quarter of 2008 primarily due to higher average daily revenue as a result of rate increases ($2.7 million), partially offset by the planned reduction in the number of units occupied by Medicaid residents ($2.1 million).  ALC stated that it was able to lower its overall expenses based upon the increase in private-pay residents and that economic conditions were favorable for higher new employees at lower wage rates.

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Illinois Housing Development Authority (IHDA) Executive Director Gloria L. Materre, Mayor Richard M. Daley, Alderman Ray Suarez, Department of Family and Support Services Commissioner Mary Ellen Caron, Department of Community Development First Deputy Commissioner Ellen Sahli and members of the Senior Lifestyle Corporation recently celebrated the grand opening of a new development featuring 85 new affordable homes for seniors in Chicago’s Kelvyn Park neighborhood on the city’s Northwest Side.  IHDA provided a $1.25 million low-interest loan from the Illinois Affordable Housing Trust Fund to build Senior Suites of Kelvyn Park, 2715 N. Cicero Ave., Chicago. IHDA, the state agency dedicated to creating affordable housing for Illinois residents, was a key partner in the construction of the 60 one-bedroom and 25 studio apartments.  Senior Suites of Kelvyn Park will bring 25 studios and 60 one-bedroom apartments, complete with bathroom and kitchen facilities, at initial monthly rents from $650 to $795. The apartments in the six-story building will be available to seniors, 62 or older, whose incomes meet federal guidelines.

Through a partnership with the City of Chicago, the six-story, 75,000 square foot development also houses a senior center to connect seniors with services supporting their independent lifestyle. The center features a fitness center, computer lab, cafeteria and other amenities. Seniors who live in the surrounding neighborhood also will benefit from the center.  Since the mid-1990s, IHDA has invested more than $41.7 million in low-interest loans and tax credit equity to join Senior Lifestyle Corp. in adding affordable housing throughout the Chicago area.

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