Senior Care Realty
Senior Care Realty News
December 2009
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So Long to 2009

It's been quite a year.  For those of us in the business of helping buyers and sellers of senior care real estate, it's been a long year.   The credit market freeze-up that began last winter hasn't shown many signs of thawing as this winter arrived.  Over the course of the year, we've heard the frustration of those who want to buy, those who want to sell, and even those who want to lend.  This has been a year of frustration but it's also been a year of renewal and opportunity.

Some would say that the business practices and asset pricing of a few years ago were out of control.   They may be right.  But the pendulum swings in both directions and errors are corrected.  Like many others, we think the pendulum has swung too far in the opposite direction and we're confident that things will normalize soon.  Despite challenges in financing, we have helped sellers and buyers close deals this year through persistence and a strong dose of creativity.

During turbulent times, there is always opportunity to be found.  At Senior Care Realty, we've grown in 2009 by expanding our advisory services, opening an affiliate office in Phoenix, and launching a sale-leaseback program for assisted living providers.  Each of these programs has seen success in 2009 and we believe they will be an even bigger part of our business in 2010 and beyond.

As the year comes to a close, we want to thank the many people who we had an opportunity to work with during 2009.  We especially thank our clients who operate assisted living facilities and never cease inspiring us - your tireless efforts caring for others makes our job seem quite easy.  We look forward to starting new with all of you in 2010.

Merry Christmas and Happy Holidays -

Mike

 
Motivated Sellers + Well Performing Properties = Crazy Caps!
Many buyers are looking for bargains in this market.  Look no further.  These Wisconsin facilities are being offered at what can only be described as crazy cap rates. 
·  LaCrosse - $2,900,000 - 27 Units - $510,470 NOI - 17.6% Cap
 
·  Western WI - $995,000 - 27 Units - $151,000 NOI - 15.2% Cap
 
·  Northeast WI - $950,000 - 15 Units - $105,036 NOI - 11.1% Cap
 
·  Baraboo - $950,000 - 15 Units - $102,591 NOI - 10.8% Cap
 
Or buy the whole package -
·  Package - $5,795,000 - 84 Units - $869,097 NOI - 15% Cap
 
For more information, please visit www.seniorcarerealty.com to complete a confidentility agreement online.  Call Daren Dudgeon at 877-834-4175 to learn more about these deals.
 
Profiles in Business
Profiles in Business is a regular newsletter column. We'll feature profiles on Senior Care Realty's business partners, clients, lenders, and others in and around the senior care industry.
 

Helping Families and Senior Care Facilities

For Randy Zehr, his job is all about helping families make the right choice, and helping senior care facilities find the right residents. As an eldercare advisor at A Place for Mom, Zehr helps seniors and their families through the maze of senior resources, and care and housing options. "It can be overwhelming for many, as most folks have never been through a search before and they don't know what to look for, what to ask, and where to start," he explains.

 

The results of his work are a win-win for families and for the senior care facilities with whom he partners. "We work very closely with the facilities that partner with us. We are here to find them the right residents who fit their model of care," he adds. Zehr says A Place for Mom becomes an important part of a facility's marketing plan, helping initiate facility tours. "After the tour, we follow up with families and learn what they like or did not like, and we share this information with the properties, to help them improve their presentation," he says.

 

Zehr offered the following tips for keeping a facility full.

 

1)    Be sure to stress benefits when taking family members on a facility tour. As an example, if you are approaching the dining room on a tour, instead of saying "here is the dining room", explain the benefit like this: "In the dining room we gather and enjoy nutritious home cooked meals and this helps them become healthier. Residents enjoy each other's company as they dine, and this socialization is vital to their health as well."

2)    As you talk with a family, either in person or on the telephone, listen for that family's hot buttons; what is most important to them? If it's security, where Mom has felt insecure at home, talk about that and how security is enabled at your facility. If the hot button is medication management, describe how your caregivers help ensure that Mom takes her meds appropriately. In any case, listen closely to what is most important to the family and address that as you tour your property.

3)    Have the right people in the right place during your tour. That is, make sure you communicate that your teams will truly care about their loved one. When families can make an emotional connection with the people they talk to, such rapport can go a long way in helping them make a decision and verify they've made the right choice.

 

Overall, says Zehr, it is important to emphasize that an older loved one will get help in ensuring that their medications are taken correctly, that they will eat well and they will socialize. "Those three things can really improve the health and outlook of that loved one, particularly if they have been living alone, and many have," he explains.

 

For more information contact Zehr at randyz@aplaceformom.com. A Place for Mom is a nationwide company with nearly 300 eldercare advisors. Learn more at www.aplaceformom.com.

 
 
New Listings. New Opportunities.
Wisconsin: 17 bed CBRF built in 1995. 100% occupied, 95% private pay, with a waiting list. Large site has room for expansion.  11.1% cap - $950,000.  For more information on this listing, contact Daren Dudgeon at 877-834-4175 or daren@seniorcarerealty.com.


Tucson, AZ: 10-bed assisted living home with strong occupancy and excellent reputation.  Home is 2956 sq ft and was built in 2000 - $750,000.  Property can be purchased with a second 10-bed assisted living home owned by seller for just $1,250,000.
 
Arizona: Three assisted living homes with 20 beds on seven acres. Fully occupied with a waiting list. Excellent reputation with a 10 year track record - $2,150,000.
 
Phoenix: Development opportunity. Site approved for two 28 unit ALFs.  Motivated seller is ready to let a new owner complete the development.
 
For more information, contact Kerri Ciesielski at 877-834-4175 or kerri@seniorcarerealty.com.
 
Upcoming Industry Events
· January 27, 2010, How to Buy and Sell Assisted Living Facilities
Senior Care Realty is hosting a second informational workshop in Arizona. Location is the Scottsdale Plaza Resort in Scottsdale. Download the registration form. 
 
· March 24-25, 2010, WALA's 15th Annual Spring Conference
Make your plans to join us at the Kalahari Water Park and Resort in Wisconsin Dells. More information will be available soon. Visit www.ewala.org for updates.
 
Senior Care In The News
News and Details on senior care sales and developments