New
Development
Ground was broken on The Village at Penn State. The CCRC is being
built on a 160-acre site owned by Penn State, however the university will not be
involved in its operation. It is slated for completion in 2003.
Abbotswood at Irving Park announced the grand opening of VerraSpring.
The community offers assisted-living to the independent-living campus.
A new addition has been added to Town Square at Pleasant View retirement
community. The new building in Manheim, Pa., will consist of 39 independent
units and 39 new units in the personal-care center.
The Shelter Group broke ground on its newest community, Mays Chapel Ridge,
in Baltimore. The 161-unit facility will offer independent, assisted-living and
Alzheimer's care for residents. The grand opening is scheduled for Spring 2002.
Lantz-Boggio Architects completed two new projects for Covenant Retirement
Communities. In Connecticut, a 66-unit facility called Pineview of Cromwell
offers both assisted- and independent-living units. In Colorado, a new
three-story building, Mountain View Apartments, provides additional
independent-living units.
The Inn and The Gardens opened their doors to residents in need of
assisted-living and Alzheimer's care. The additions will be part of the
retirement community, The Fountains at Sea Bluffs in Dana Point, Calif.
Marriott Senior Living Services is the new managing company for three
retirement communities in the Minneapolis/St. Paul region: Rosewood Estate of
Highland, Rosewood Estate of Roseville and Rosewood Estate of Maplewood. These
facilities provide assisted-living and respite care.
Cordia Senior Living has taken over the management of Maravilla at
Vernon Hills in suburban Chicago. The 287-unit facility offers assisted and
independent living.
Focus on Finance
Bankrupty Bulletin
 A
large assisted-living provider files for bankruptcy. Assisted Living Concepts
Inc. announced Oct. 1 that it is initiating a debt-reorganization plan and filed
a voluntary petition under Chapter 11. Under the plan, Assisted Living Concepts'
debentures and unsecured debt will be exchanged for $40.25 million in seven-year
secured notes, $15.25 million in ten-year secured notes and 96 percent of the
common stock of the reorganized company. Existing stockholders of the company
will exchange their shares for 4 percent of its new common stock.
For more information, visit www.alcco.com.
Another company financially floundering is Alterra Healthcare Corp. Alterra
reported nearly $200 million net loss (which includes assets held for sale)
after selling 15 of its residences in the quarter ending June 30. The company
evaluated its reorganization plan and increased its total number of "for
sales" to 82.
For more information, visit www.assisted.com.
Even among these volatile economic conditions, one company has completed its
reorganization plan and no longer needs to be protected by Chapter 11. Genesis
Health Ventures Inc. reported its financial restructuring plan was successful,
in addition to its merger with Multicare Companies Inc. To fund its debt, the
company has obtained $515 million in credit from First Union, Goldman Sachs and
GE Capital. Bank lenders will receive cash, new debt, convertible preferred
stock and 93 percent of Genesis' new common stock.
For more information, visit www.ghv.com.
HHS Grants Millions to Seniors Affected by Sept. 11 Disaster
The U.S. Department of Health and Human Services is providing $1.3 million in
relief funds to the New York State Office for the Aging and the Virginia
Department for the Aging. The money will aid seniors impacted by the Sept. 11
terrorist attack and make sure they are receiving needed services, i.e.,
home-delivered meals, transportation and counseling. The HHS donated a total of
$126 million in disaster-relief funds.
For more information, visit www.hhs.gov.
Large Grant Supports Alzheimer's Research
The National Institute on Aging gave $54 million to the Alzheimer's Disease
Cooperative Study. The study is composed of 83 medical research centers across
the United States and Canada. The research teams hope to discover more
proficient diagnostic means and test different Alzheimer's drugs that could
prevent or slow down the progression of the disease. The University of
California at San Diego is coordinating these efforts.
For a full listing of the research centers, visit www.nih.gov.
Lender Survey Results Released
The results of the 2001 Lender Preferences Survey have been released. One
hundred fifteen lenders active in the industry responded to the survey conducted
by the National Investment Center for the Seniors Housing and Care Industries
and CBIZ Valuation Counselors. The survey indicated construction financing was
down in 2001, while funding for acquiring stabilized projects, refinancing
existing debt and credit enhancements have increased. The lenders said
low-acuity senior-housing projects would account for more than half of the
lending activity in 2001. The survey also indicated loan-to-value ratios were
low and required debt-coverage ratios may end up higher than last year.
For more information, visit www.nic.org.
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