Affirmed Housing Group announced its Magnolia Court facility was awarded the U.S. Green Building Council (USGBC) LEED Platinum certification.

LEED is an international green building certification system which provides third-party verification that a building or community was designed and built to decrease environmental impact.

Developed by the USGBC, projects must meet certain prerequisites to be LEED certified.  Magnolia Court achieved the highest sustainability rating, LEED Platinum.

“While demand for traditional residential construction is slowing, the green housing market continues to grow and Magnolia Court is a great example of why this is,” said Nate Kredich, Vice President, Residential Market Development, U.S. Green Building Council. “LEED certified homes are healthier places to live, produce lower utility bills, have better air quality, and leave a smaller environmental footprint behind.”

The facility consists of 52 apartments that are rented to those 55 years and older.  Many of the units include environmentally-friendly products such as low-lead paint, building components that were extracted, processed, or manufactured in the area.

Magnolia Court was also built with an underground storm water retention system designed to retain and regulate the discharge of storm water runoff from surrounding properties.

“We are honored and humbled by this distinction.  We hope that Magnolia Court will serve as a catalyst for sustainability throughout the state of California,” said James Silverwood, President of Affirmed Housing Group.

Care Innovations Connect, a joint venture between Intel and GE, announced a new product to address social isolation in older adults and provide caregivers the ability to monitor the changing needs of seniors.

The product comes as a result of ten years of in depth research and offers a range of wellness surveys, brain fitness games, medication compliance reminders, and simple social networking tools for seniors to help them “go digital” and proactively engage in their physical, social and mental health.

“Research has shown that loneliness, as a health risk factor, is twice as detrimental as being obese, and equal to the risk of smoking cigarettes and alcoholism,” said Louis Burns, chief executive officer of Care Innovations.  “With Connect, we’re helping senior service providers overcome this issue by helping them identify major health deterioration in their members, while enabling seniors to stay engaged and live more socially connected lives.”

The Connect system includes both an in-home digital device for seniors and an online portal where the professional caregiver can customize content for each member.  By giving staff a tool to quickly assess individual wellness, Connect drives operational efficiency and improves quality of service with proactive, consistent, tailored care.

Recent data shows that one of the biggest obstacles to successful care in senior living communities is members’ lack of information about available social services and the inability to easily socialize with others.  Connect overcomes this obstacle by proactively sharing information about available services, enabling seniors to connect with one another and build communities.  In addition, innovative software lets professional caregivers customize wellness surveys for seniors so that they can proactively identify potential issues.

“Technology is one of LeadingAge’s Five Big Ideas to help empower people to live fully as they age” said Larry Minnix, president and chief executive officer of LeadingAge, an association of 5,400 not-for-profit organizations dedicated to expanding the world of possibilities for aging.  “Through collaborations between technology developers, aging services providers, and, most importantly, the seniors that we serve, together we can develop innovative technology solutions and deliver them into the homes of older adults to help them to maintain their health, happiness and independence.

While the Department of Housing and Urban Development’s Office of Healthcare Program has taken steps to strengthen the Section 232 program, more can still be done according to a report from the Office of Inspector General.

“Additional steps can be taken to strengthen the controls which were sometimes inconsistent or vague, and ensure punch lists are followed,” said the report.  ”Further, the Office of Healthcare Programs could place a higher priority on enforcing regulatory issues.”

Formed by HUD in 2008, the OHP was created to administer the Federal Housing Administration’s Section 232 and 234 programs.  As of December 2010, HUD’s 232 portfolio included 2,390 mortgages valued at more than $16 billion with unpaid principal balances totaling more than $15 billion.  This portfolio included 811 properties that HUD classified as troubled or potentially troubled, with mortgage balances totaling more than $5 billion.

The OIG audit found the agency could place a higher priority on regulatory enforcement, which would contribute to a lower risk of defaults.

“The Office of Healthcare Programs adopted a “no claims” goal, with an emphasis on claims reduction and customer service rather than on what it considered minor enforcement issues,” said the report.

Since the OHP place regulatory enforcement at a low priority, it failed to see important ongoing regulatory violations in its at risk portfolio.  ”Examples included a defunct property in Illinois and significant unsupported expenditures totaling $756,833 at properties in Texas and Florida,” said the report.

HUD staff felt that the key to minimizing loss was to keep properties operating and that previous losses in the Section 232 program were the result of weak operators.

Older Americans are the hardest hit by foreclosure rescue scams, in what amounts to a total of more than $40 million in losses from fees paid to fraudulent and deceptive “rescuers,” says an issue brief from the Lawyers’ Committee for Civil Rights Under Law. Scams targeting the population of those who are ages 51 and older account for 41% of that total, amounting to more than $16.5 million as of July 2011.

Generated from a national Loan Modification Scam Database established in February 2010 by the Lawyers’ Committee, the data serves as a repository for complaints from foreclosure rescue scam victims.

The launch of the Consumer Financial Protection Bureau, which took place Thursday, is a step in the right direction, the Lawyers’ Committee said this week.

“We are particularly encouraged to see that one of the CFPB’s specific initiatives includes its Office of Older Americans, set to begin operations early next year,” the Lawyers’ Committee said in a statement. “The Lawyers’ Committee is proud of our recent successes in advocating for consumers’ rights, and looks forward to the increased transparency that the CFPB’s regulatory and information-sharing capabilities will provide.”

The CFPB is currently building its Office of Older Americans, aimed to connect seniors with what they need to guide themselves through their financial lives. The office will be up and running under the Dodd-Frank Act by January 21, 2012. “We are building it right alongside the rest of the consumer bureau, and in the coming weeks and months you’ll hear more from us about financial issues for seniors,” the agency notes on its website.

Written by Elizabeth Ecker

Ryan Companies announced it plans to develop and construct a 100-unit affordable senior apartment community to further expand the Thomas Place brand in Illinois.

Thomas Place Gurnee, a $25.4 million development, is the third project in Chicago’s northern suburbs Ryan has created with its joint venture development partner, Jim Bergman.

Thomas Place Gurnee, an age-restricted community, will be located on a 12-acre site on the east side of Hunt Club Road, just north of Washington Avenue, in Gurnee, Ill.  Construction started July 5, and the project will be complete and ready for occupancy in Spring 2012.

“Thomas Place Gurnee expands our senior housing prototype into the far northern suburbs, in the heart of Lake County,” said Dan Walsh, vice president of development, Ryan Companies US, Inc. “Residents will benefit from all the features, amenities and activities the development will offer while still staying close to their family and neighborhood connections.”

The development will feature 33 one bedroom, one bathroom units, and 67 two bedroom, two bath units.  Apartments at Thomas Place Gurnee will include a balcony or patio, a full-sized kitchen with modern cabinetry and appliances, a washer and dryer, and walk-in closets.  The age-restriction guidelines require that at least one resident in each unit must be 55 or older.

“With the Village almost completely built out we looked at our existing housing stock and overlayed future demographic projections.  We identified a large gap in affordable housing for older individuals or couples,” Mayor Kovarik said. “It was important to the Village that our residents have housing opportunities that would allow them to stay in the community. Thomas Place is the perfect setting to fill that need and will be a wonderful addition.”

According to Ryan, in addition to creating affordable living options for seniors, the project is expected to create over 450 construction jobs.  Ryan has constructed two other senior facilities in northern Illinois. Thomas Place Glenview was developed in 2007 and features 144 units including 108 affordable units. It currently is 100 percent leased. Thomas Place Fox Lake, which opened in the fall of 2010, has 100 affordable units and is also 100 percent leased.

The project financing is a combination of tax credit equity provided by Credit Capital, LLC and The Richman Group, and a $17.2 million construction loan and $4.25 million permanent loan from the Citibank.

In the latest of a series of acquisitions and investment moves, Grubb & Ellis Healthcare REIT II, Inc. recently announced the addition of Maxfield Medical Office Building, located in Florida, to its portfolio.

The 41,000 square foot building is on the Doctors Hospital of Sarasota campus, and is located next to the 168-bed hospital. Grubb & Ellis says the property is 91% leased to six tenants that provide a variety of medical services including orthopedic surgery, neurosurgery and spine services, internal medicine, primary care, rehabilitation, and home health services; of these, half are affiliated with Doctors Hospital of Sarasota and another nearby hospital, Sarasota Memorial Hospital.

“When evaluating medical office buildings for potential acquisition, we look for a facility that is on the campus of a thriving medical center that is owned and operated by the industry’s best practitioners,” said Danny Prosky, president and chief operating officer of the REIT.  ”Maxfield Medical Office Building fit our selection criteria to a tee and is an excellent addition to our rapidly growing portfolio of clinical healthcare properties.”

Grubb & Ellis, represented by Manfred Welfonder of MW Development & Investment Advisory, Inc., acquired the office building from Maxfield Medical Building, LLC, which was represented by Duane Henderson of Wagner Realty. The company financed the new property with a $5.12 million loan assumption and cash proceeds received from its offering.

Since March 31, 2011, Grubb & Ellis says its portfolio has increased by more than 81%, with its property portfolio holding a debt equal to 24.7% of its value. To date, Grubb & Ellis has made 23 acquisitions consisting of 54 buildings, which are valued at approximately $418.7 million.

Written by Alyssa Gerace

SeniorHomes.com announced it closed an additional $3 million in financing to accelerate the company’s growth.  The funds were raised from MentorTech Ventures as well as other investors and brings the the total amount raised to $4.6 million.

Started in 2009, the company provides a senior housing directory and also serves as a lead provider for private pay operators.  The latest round of financing will be used to launch new markets across the United States and develop additional categories serving the needs of aging adults.

“SeniorHomes.com currently operates in approximately 30 of the nation’s 50 largest metropolitan areas.” says Chris Rodde, CEO of SeniorHomes.com. “In the markets in which we operate today, we’ve seen great demand for our services by seniors and their families, at a time when many families are faced with making difficult choices without the advantage of advanced planning. Our exceptional team of care advisors helps families navigate what can otherwise be an overwhelming amount of information with ease and understanding.”

MentorTech Ventures is a Philadelphia based venture capital fund that has invested in companies such as Diapers.com, TicketLeap, MerchantCircle, and more.  The company lead the $1.1 Million Series A round in May 2010 as well.

Omnicare, Inc. (NYSE:OCR) reported its second quarter results that show an increase in its GAAP net income to .32 per share versus .20 per share for the same period in 2011 and an adjusted EBITDA of $146.3 million compared to $144.5 million in Q2 2011.

Omnicare’s cash flow from continuing operations during Q2 saw a substantial increase to $136.9 milion during the quarter as compared to its second quarter 2010.  The increase in cash flow was comprised of a $23.3 million refund for federal tax overpayments and the increase also includes a settlement payment of $37.9 million as well as $7.3 million of tender premium relating to the early redemption of the Company’s 6.75% notes.

During the quarter, Omnicare redeemed $50 million of its 6.125% Senior Subordinated Notes, leaving $75 million of these notes outstanding as of June 30, 2011.

“We continue to be very pleased with our cash flow efficiency and working capital management,” said John L. Workman, Omnicare’s President and Chief Financial Officer.  “We generated approximately $137 million of cash flows from continuing operations during the quarter, bringing our first half total to approximately $281 million, which marks the highest first six-month period of any year in our 30-year history. These strong cash flows enabled us to further improve our financial position while returning over 33% to shareholders for the second quarter.”

The year has been full of REIT acquisitions and Ventas (NYSE: VTR) recently closed on the purchase of Health Properties, Inc. (NYSE: NHP) for $7.6 billion, creating one of the largest publicly-traded REITs.

Other Ventas’ acquisitions include Lillibridge Healthcare Services and Atria, effectively doubling the size of the company.  Debra Cafaro, chairman and chief executive officer of Ventas sat down with REIT.com during REITWeek 2011 to discuss the company’s acquisitions.

“We are working very hard with these acquisitions to strategically build a diversified company that can perform well for shareholders in the coming decade,” she said.

Diversity has been key for Ventas, who sees strength in the diverse aspect of its portfolio.

“We are all about portfolio composition,” Cafaro said. “We are trying to create a portfolio that if the economy goes up we should see benefit from our Atria senior housing acquisitions because those are higher-growth, private-pay assets. If the economy is slower, we believe that the contractual growth in the NHP triple-net leases should really provide good growth with downside protection.”

American Realty Capital Healthcare Trust, Inc. recently announced that it has entered a contract to acquire 12 healthcare facilities for an aggregated $257.5 million purchase price.

The facilities include three rehabilitation hospitals, two ambulatory surgery center/medical offices, two hospital/medical office buildings, three post-acute care rehabilitation facilities, one long-term acute care hospital, and one medical office building, for a total of 765,038 square feet.

The acquisition will increase ARC Healthcare’s portfolio, which includes closed assets and those under contract, to 17 properties worth an aggregated $307.1 million. The majority of the portfolio is leased to 49 tenants, of which only 16% have lease expiration dates prior to Dec. 16, 2016, says the company; most of the tenants’ lease terms will not expire for more than 10 years from the projected closings.

“This is a great opportunity to purchase an institutional quality, diversified portfolio of healthcare facilities through a direct relationship with the seller,” Todd Jensen, Chief Investment Officer for ARC Healthcare, said in a statement. “The portfolio has predominantly long-term, triple-net leases with contractual annual rent increases across six different types of healthcare assets.”

Additionally, said Jensen, a majority of the facilities are located within the largest 25 cities, and this positions the portfolio to benefit from the demographic changes and growth in the over-65 population.

Written by Alyssa Gerace