June 18, 2020  //  Episode 2

Dealmaking During Crisis: Is it possible? with guests Steve Levin and Josh Kochek (Hana2.0 Property Group)

– Presented by Senwell Senior Investment Advisors

June 18, 2020  //    Episode 2

Dealmaking During Crisis: Is it possible? with guest Steve Levin and Josh Kochek (Hana2.0 Property Group)

– Presented by Senwell Senior Investment Advisors

Show Notes

Episode 02: Dealmaking During Crisis: Is it possible? with guests Steve Levin and Josh Kochek – Presented by Senwell Senior Investment Advisors

On this episode of The Investment Opportunity Podcast, we welcome Steve Levin (Co-President) and Josh Kochek (Chief Investment Officer) with Hana2.0 Property Group. Hana2.0 Property Group acquires and triple-net leases high-quality skilled nursing facilities and senior living communities throughout the U.S. 

In this episode, we cover the following topics:

  1. Hana2.0 investment strategy pre- and post-COVID
  2. Debt and equity environment
  3. Potential changes in negotiation
  4. Changes in due diligence
  5. Attention to detail: census, Q-mix and labor
  6. Utilizing most recent third party reports, CAPEX spend reports, property condition reports
  7. CAPEX strategy
  8. CAP Rate projections

You can learn more about, and contact Hana2.0 Property Group by visiting their website: www.hana2pg.com.

The Investment Opportunity Podcast is presented by Senwell Senior Investment Advisors, a mergers and acquisitions advisory firm specializing in skilled nursing and seniors housing. The show is hosted by Ben Bohland and Brandon Bohland.

Want to watch the show? Visit our website: www.senwelladvisors.com/podcast

If you have suggestions on topics or guests that to invite on the show, questions or comments, please contact us. You can get in touch with us the following ways:

Contact Senwell Senior Investment Advisors for mergers, acquisitions and dispositions. Senwell specializes in working with owners and operators of skilled nursing (short-term rehabilitation and long-term care) facilities, assisted living and memory care facilities, independent living facilities, continuing care retirement communities and owners of bed licenses in Certificate of Need (CON) states or states with a moratorium on bed licenses.

Thank you for listening to The Investment Opportunity Podcast!

Guest Bios

Joshua J. Kochek serves as the Chief Investment Officer for Hana2.0 Property Group. He previously served as Senior Vice President, Portfolio Management for Cascade Capital Group, LLC from May 2019 to September 2019, following 11 years at both Omega Healthcare Investors, Inc. (NYSE: OHI) and Aviv REIT, Inc. (formerly traded on the NYSE prior to its merger with Omega).

Mr. Kochek served as Omega’s Senior Vice President of Investments from 2015 to 2019 and as Aviv’s Senior Vice President, Investments and Asset Management, from 2008 to 2015. Prior to joining Aviv, Mr. Kochek served with LaSalle Bank and its successor entity, Bank of America, from 2000 to 2008 in roles that included Credit Analyst Commercial Lending, Assistant Vice President Healthcare Lending, and Vice President, providing lending services to the skilled nursing and senior living sectors. Mr. Kochek received a B.S. in Finance from the University of Kentucky. He recently served as an executive board member of the American Senior Housing Association and is a former member of the National Investment Center’s Future Leaders Council.


Steven R. Levin serves as Co-President of Hana2.0 Property Group. Previously, he served as Senior Vice President of Real Estate for Omega Healthcare Investors, Inc. (NYSE: OHI) from 2015 to 2019, following four years with Aviv REIT, Inc. (formerly traded on the NYSE), where he last served as Senior Vice President of Real Estate. From 2004 to 2011, Mr. Levin was President of Continental Wingate Development Company, which provided the real estate development functions for several senior living operators in the Northeast.

Mr. Levin operated the Caymus Companies from 2002 to 2004, providing senior living real estate development service as a sole proprietor, following six years as Vice President of Construction and Development for both CMI Senior Housing and its successor entity EPOCH Senior Living. In the five preceding years, Mr. Levin served as project manager of residential or healthcare developments for both Avalon Bay Properties and Suffolk Construction. In the 1980s, he served in a variety of roles for architectural firms Sasaki Associates, ADD, and Peterson Griffin Architects, where he last served as a partner. Mr. Levin attended the Boston Architectural Center and Bentley College. 


Episode 02: Dealmaking During Crisis: Is it possible? with guests Steve Levin and Josh Kochek (Hana2.0 Property Group)


[00:00:00] On this episode of the Investment Opportunity podcast, we asked the question, is it possible to do deals during covid? 

Intro/Outro: [00:00:09] Welcome to the Investment Opportunity podcast. We’ll educate you on the latest investment trends happening in one of the hottest real estate classes, skilled nursing and seniors housing. We’ll point out the risks so you can reap the rewards of investing in this growing and complex industry. And now your hosts, Ben Bohland and Brandon Bohland. 

[00:00:33] Welcome to the show. Thanks for joining us. 

Ben[00:00:35] This is the Investment Opportunity podcast presented by Senwell Senior Investment Advisors. A mergers and acquisitions firm focused on senior care and seniors housing. Joining us today on the show is Steve Levin. And Josh, Kochek Steve Levin is a co president. And Josh kochek is the chief investment officer at Hana 2.0 Property Group, the property group Acquirer’s and triple net leases, high quality skilled nursing facilities and senior living communities throughout the U.S.. Steve and, Josh, thanks for joining us. 

Josh Kochek: [00:01:08] Thanks so much for having us. 

[00:01:11] So I’ll take it, by the way. If you’re listening to this, we sound exactly alike. But if you’re watching us, it’s a little bit easier, fortunately for Josh and Steve. They look nothing alike. They look eerily dissimilar to each other. We apologize ahead of time for that. You guys probably have no idea which one is which. 

Josh Kochek: [00:01:35] I did. I wrote it down when you talk to somebody off camera. Otherwise, I would not. 

Ben: [00:01:40] Oh, by the way, I’m Ben Bohland. I don’t think we introduced ourselves. I’m Ben Bohland and this is Brandon Bohland. 

Brandon: [00:01:46] Hey, guys. 

Brandon: [00:01:48] Why don’t you tell us a little bit more about your roles at Hana 2.0 and what Hana 2.0 is getting into these days? I know that you’re a newer group and you guys have loads of experience from history. And tell us a little bit about it. 

Steve Levin: [00:02:04] Yeah, sure. Again, thank you for having us. Although it’s a new group, Hana 2.0 Property Group, we are a group of seasoned industry veterans with, probably collective of the executive team over 100 years of experience in the senior housing, skilled nursing. 

Steve Levin: [00:02:28] Independent living memory care. I Steve Levin am the co-president, along with Jeff Marshall and Josh is our chief investment officer and Sam Covitz is our general counsel. You know, we saw a great opportunity in sort of bringing back what we’ve done over the years. Really sort of operator driven, you know, focused on relationships along with key markets and quality real estate. And so we saw a void in the industry. We want to collect our obviously individual experiences. We have a long history of working together. And since my team acquired 14 properties, we are seeking predominantly skilled nursing. But we’re also looking at. Senior housing as it relates to assisted living memory care. And some independent. So, we have properties now in Pennsylvania, Ohio and Florida. Josh, can you talk a little bit about our investments? I think we have a very robust pipeline given the Covid in our climate conditions. But, you know, we see great opportunity. 

Steve Levin: [00:03:41] Things look great for us. 

Brandon: [00:03:44] Thanks for that intro, guys. Josh, maybe you could speak to this a little bit more, too. Are you guys predominantly investing in existing assets, new construction? Are you doing any new development projects or was that the goal? And maybe are you thinking about that mix a little bit differently going forward? 

Josh Kochek: [00:04:02] Sure, I can touch base on that. But so to date, the investments we’ve made have been acquisitions of existing operating properties. But we continue to believe that a diversified portfolio, both skilled and non-skilled assets, existing and new construction, make the most sense for us. And so Steve can talk a little more extensively about our efforts on the new construction site. But we’re absolutely pursuing opportunities under the new construction, either replacement of old functionally obsolete buildings in good markets, or conversely, where beds may become available or where there’s an attractive AL market where we can work hand-in-hand with some development partners and with an operator to deliver new product. But, Steve, maybe talk a little bit more in detail about that point. 

Steve Levin: [00:04:56] You know, obviously, my background is in real estate, construction and design. And, in Hana working with Senwell Advisors we’ve had a couple of opportunities of looking at purchasing beds and doing new construction. And so we have that in-house expertise. We have a real estate team and then a group under the Hana umbrella. So we’re able to actually look and develop again, which with operator relationships in key markets. But we do see that as certainly an opportunity. Then we have the ability and I think, as Josh said, that you have a diversified portfolio along with existing assets, new construction, especially what’s going on today. I do you think there will be lots of opportunity, in regard to building additions or renovating existing facilities to create more private areas, private rooms, private bathrooms to isolate a residence due to I think heightened awareness of the Covid virus and what comes down the road in the future. 

Ben: [00:06:03] Yes, so you guys obviously had a strategy going into this and with the pandemic, I mean, I think things have completely shifted over the last few months. Has your strategy changed A and then B..  are you are you still looking at the same deals as what you were looking at before? Have you changed the mindset moving forward? And are you envisioning this being an opportunistic market? Rather than sitting on the sidelines and putting things on pause. 

Josh Kochek: [00:06:38] So I would say in response to that. While acknowledging the market is dynamic and changed meaningfully over the last few months, we’ve continued to actively invest through the shift in the markets. We’ve closed a portfolio at the beginning of March, another one at April, a one off asset in May, and then we have another asset slated for later this month or early July. So we continue to invest and look for opportunities in the market. I know there’s been a shift in terms of when we initially launched the platform. Times were different and there was a lot of competition. We’ve seen a pullback from a number of firms for various reasons, whether it’s capital market issues or accessibility of debt or other more wait and see cautious approach. But we feel, given our expertise and ability to really dig in and understand local dynamic and operator relationships and things like that, that we’re working with people that will not only bear kind of the burden of the existing market dynamics, but come out much more successful on the other end. So we don’t make light of obviously what’s going on in the environment. And, I Wouldn’t want to say we’re taking advantage of a situation. But we look to be opportunistic with maybe a little bit lesser competition and we’re fine, finding some nice opportunities. So, we’re still aggressively looking to grow the platform. 

Brandon: [00:08:19] So I appreciate you sharing that, so you did mention capital markets. Could we maybe touch a little bit more on that? There was an article that came out recently that talked about how expensive debt is actually getting, some historic levels that we just haven’t seen in decades in our industry that these REITs are tying up debt for. And so could you talk a little bit about any challenges that you’re seeing in the current environment, both on the debt and on the equity raise side of things?


Josh Kochek: [00:08:49] Sure. So on the debt side, it’s we’re living this real-time as we’re looking to pair kind of mortgage financing with the acquisitions that we’ve both completed and are working to complete over the next few months. And we’ve been very fortunate and that our banking partners have stuck by their commitments on anything that was committed to pre-kind of March of 2020 with unchanged terms, which has actually been wonderful. And, we really appreciate those relationships as we’ve looked kind of to pare debt on the future acquisitions. The dynamic has shifted somewhat in the marketplace in terms of we’re seeing banks that are still some people are on the sidelines. And I think it tends to be the banks that are having a more active portfolio issues where they’re more inward focused on portfolio management issues or kind of doing some work out and things like that, which has to be expected. Even in those type scenarios, we don’t see those lenders as completely exiting, but maybe providing unfavorable terms in terms of leverage levels or pricing of the debt. But there’s still plenty of regional banks that have lent into the space over a long period of time that no, the staying power of the industry and have lived through, you know, PPS and some other kind of market-changing dynamics over time that stand by the industry and continue to look to deploy capital. 

Josh Kochek: [00:10:26] So if anything, I would tell you we’re not seeing unprecedented cost of debt today. We’re seeing some creep in terms of lender expectations, somewhere 25 to 50 basis points. Are that the most real time information I can give you on expectation that they’re looking for a little bit more recourse today than they would have been three to six months ago. You could get away with probably non recourse in most situations, whereas even unstabilized portfolios, now you’re looking for some level of recourse. So those are the two biggest changes. And then there’s been a little bit of downward pressure on leverage. We have traditionally been looking at somewhere in the neighborhood of 75 percent loan to cost financing. We still think it’s available. Still had conversations in the last week where we’ve been told that it’s still available. Some lenders have gone down to maybe sixty five. But we think that it’s a dynamic enough environment with enough providers of capital that while pricing might get a little bit more expensive in the short term, that there’s still plenty of liquidity in the market. 

Brandon: [00:11:40] And I would imagine that a lot of those variables are dependent on the relationship, too. So, for example, if you’re going to do a sale leaseback, keeping the operator in place, that certainly might warrant less risk vs. acquiring and moving into a new operator. Is that fair to say? 

Josh Kochek: [00:12:01] I think that’s absolutely one of the things that the lenders will look at. Traditional relationships with the executive team matters a lot to in terms of how to being a new company, but really being the core of a very longstanding owner in the space. Those relationships still carry weight, even though we were an independent company four or five years ago. The lending relationships and the success that we had together have kind of the name of the company has changed, but the relationships stay intact. And so if we approach people that we’ve heard about lending, we’re getting a more wait and see approach by people that either have lent into our management team in the past or were wanting to lend to us, are still reacting favorably to the prospect of lending to our team once again. 

Brandon: [00:13:01] So I kind of want to walk us through a scenario here and Steve or Josh. I’m not sure which one of you can help us walk through this, but let’s say we send you guys a deal and we’re now in a unique time period. You’re interested in the deal and you’re ready to make an LOI or put out you know, maybe we’re even past that phase and we start to take a look at a little bit more into the legal aspect with the purchase agreement. What are some things that you’re thinking about differently as far as any kind of documentation today versus what you might have put in the paperwork? You know, even as recently as six months ago. 

Josh Kochek: [00:13:43] So I would tell you, there’s two primary points that I think we would look at now versus what we would have six months ago in terms of how we would go about negotiating that LOI or agreements. The first, obviously, is going to be a reliance on a Mac provision such that if there’s a material degradation of census or performance related to covid-19 issues, we’d want to take a hard look at that and examine it over a period of time before we feel comfortable really moving forward. That kind of dovetails into the second point that I would make as to how we’re thinking about potential changes. We’re looking for a little bit of an extended diligence period versus what we would have three months ago or six months ago. One, just because you’re just now starting to see the financial impact in March financials, which was not really a full month of impact, and then the April financials that we’re seeing from operators have the kind of a full month of impact, but that are also being materially offset by the Cares Act and some other things that have been providing relief to the industry. So we really would like to see a couple of months of the impact as it runs through the financials to understand what labor is costing and understanding that in every market it could be materially different, where if you’re in a major urban market that looks and feels a lot differently than if you’re out in rural west Texas. And what that impact on labor is. And then obviously everybody is facing a material increase on their supplies. 

Josh Kochek: [00:15:22] We saw that spike initially in late March, early April. The prices appear to be coming down for operators, but still not pre Covid levels. So we continue to monitor and assess that situation. So we’re more hyper focused on a couple of these elements and understanding what that near-term impact will be. We see the current situation as being something of a near to mid-term impact with the expectation that as things return to normal in the country, hopefully that some of the census pressures that were created by, the elective surgeries that have been to the higher fuel mix buildings, the impact that they’ve seen on a census perspective or a lessening of the labor impact, because as unemployment creeps higher than has jumped to where we are today, historically what we’ve seen in the industry is that higher unemployment actually lends itself well to the staffing of nursing homes because it’s easier to retain and attract people and you’re not relying on agencies. So we see some of that slack in the kind of employment stats of the country. We expect that that will provide relief on the labor expense in time. So really understanding that for a few months. But we think as we get kinda into the summer months now, when we are able to ascertain kind of the performance in June, July, August, there will have a real sense of where we expect operators to be able to perform over the next year or so. I mean, I covered it but, maybe you have something you’d like to add. 

Steve Levin: [00:17:04] I think you covered it. I mean, if as relates to actually, you know, looking at the buildings themselves and then trying to understand the real estate aspect, the physical real estate aspect, obviously, it’s somewhat difficult. And I don’t want to give out any trade secrets. But, as you guys mentioned, if it’s a sale leaseback, you have the luxury of dealing with the operators and understanding they can all obviously give you some input. Other than that, we are looking at doing, and we have conducted some virtual tours where you actually either have the administrator or the physical plant directors or as we guide them through certain specific questions we sort of walk with them virtually right through the building. And if you have a good quality operator that’s always maintaining building, there’s records you can look at whether it’s life safety surveys or that degenerated into start up and then service calls. So there’s enough information that we can gather to get ourselves comfortable with the quality of the real estate. 

Ben: [00:18:12] So it’s mostly in terms of the diligence phase. You can’t get in here for tours, so you’re mostly doing virtual tours. At this point? 

Steve Levin: [00:18:22] No, but we can obviously through virtual tours, as I said, where we’re gonna give either the physical director or administrator a detailed sort of checklist to walk through and whether it’s safe, taking photos or having this look at certain things virtually or just gather other records that are available again, we can get ourselves comfortable. And if it’s a sale leaseback, we get a little heads up. If it’s a new acquisition. You know, you have some challenges to it. 

Brandon: [00:18:58] Josh, you had mentioned that you’re extending that diligence phase a little bit through this pandemic. What are some other things that you’re really wanting to dive in and look a little bit more beyond just kind of third party reports and census? Is there anything else that you’re looking for in labor and things like that? I guess another question is, do you also take a look at the physical plant in any way? And that’s beyond the operational question. 

Josh Kochek: [00:19:31] So in terms of other elements that we’re looking at, we’re really looking closely. Kind of day by day in some cases, but certainly month by month. As to the rebound that we expect to see in census and Q-mix, that’s we’re following that very closely because as elective surgeries dried up in March, then went to zero and most markets in the country, it did have somewhat of a census impact offset in some ways by the elimination of the three day say and some other things that operators are doing. But we have seen a little bit of erosion and our sense is that the bottom was hit and is starting to return. But making sure that it can get back on to a particular property and get back onto a level playing field of three to six months ago is very important. And then, like we talked about labor and really understanding some incentives and other things that operators have had in some cases to provide to their staff to make sure that the residents are being taken care of and in a positive way and having good outcomes and things like that, understanding if those incentives are going to be over a prolonged period of time or if it was kind of a one time event to get people over the hump. 

Josh Kochek: [00:20:53] And now that they see that in most cases, good infection control and proper levels of staffing and testing and all the things that we’re hoping to see nationwide are limiting and containing the outbreaks within particular communities. And if that’s the case, does that then trickle to relief on the staffing costs? And so we’re closely monitoring that too. We got a second part of the question. I don’t remember what it was now. 

Brandon: [00:21:17] More in terms of when you’re going through diligence and the physical plant. You’re somewhat limited to what you can really look at. Steve mentioned virtual tours. But, you know, are you looking at, I would imagine your relationship with the appraiser’s and the debt and the lenders needs to be a really good relationship for them to A allow you to do virtual tours. But is there anything else that you guys could kind of think through on the diligence phase when you’re when you’re looking at the physical plant, but somewhat limited with what you can do physically in person? 

Josh Kochek: [00:21:53] Sure. So on the relationship question, I think that you do have to have a really good relationship in order to do the virtual tours and kind of the time and the effort associated with that. But we’re only looking to work with people that we have good relationships with so that it becomes a little bit of self selection through that process. One of the avenues that we’ve had some success in looking at investments committing and moving forward on during this time-frame is to the extent you are working with somebody that may have acquired or there was a transaction associated with a particular property in the last 12 months, whether, like I said, it was an acquisition or possibly a refinance. And really using those third party reports that are dated in the last 12 months and utilizing those in a more meaningful way than we would have in the past. Instead of ordering everything new and hopefully doing some desktop, bring downs where you can look at capex spend to address any of the property condition assessments that may have been identified. We value things on our own. We’ve never been overly reliant on the appraisal to justify value, but it’s something that’s nice to have because it gives you market information and some information about the buildings. 

Josh Kochek: [00:23:12] And then, like Steve said, that the property condition assessment we can do a lot through the virtual tour is looking at the work that’s been done in those buildings over the last 12 months. And the last thing that I would add, as you know, while we’re not actively in the buildings today, this is a really good time for planning of cap ex and other things that we would want to do to enhance the properties going forward. So Steve and his team have been actively looking at the stuff in the portfolios that we’ve acquired so far, coming up with our plans and working closely with the operators to do, cosmetic facelifts, to exteriors, to improve curb appeal of the buildings, to work on specialty programs within the buildings that may attract a higher Q-mix or satisfy some referral sources in the market. And Steve can talk about the cost of construction, but we’ve seen it come down some during this time frame. So it’s a good time to really assess what you have assess, the things that you’re looking to acquire and put plans into motion to take advantage of some price drops that have occurred and really positions the assets in a good way going forward. 

Brandon: [00:24:27] That’s really good feedback. But sorry. Steve, go ahead. 

Steve Levin: [00:24:32] Well, the other thing is that when, like I said the executive team has a considerable amount of experience. So we understand the market is across the entire country and based upon sort of some key metrics, whether it’s the age of the building, a square foot of the building, we’re going to have a very good sort of understanding of that specific configuration plan configuration that gives us sort of a leg up on sort of what actually occurs within the building without actually being in the building. And, sometimes, again, because of the experience, we may have seen the building. We’ve been in a lot of buildings over the 35 or 40 years that we’ve been in the business. 

Brandon: [00:25:15] And so is that something that you guys are accounting for as maybe as your underwriting these deals to maybe increasing that cap ex reserve to accommodate the future of any potential future pandemic that may come? 

Steve Levin: [00:25:30] No. Absolutely Hana is one of our sort of missions, is to have excellent quality real estate. Obviously, market appropriate depending on where they’re located. But with the understanding, I think going forward, I think you’re going to see people, whether, operators maybe actually decrease their sort of total bed count to go from semi’s to privates. 

Steve Levin: [00:25:53] And again, due to the requirement for isolation, given today’s climate, that what’s going to happen to you in the future. But, we certainly, as Josh said, when we go through the building, we want to make sure that we have the right reserves in order to upgrade the buildings that enhance them, to provide quality real estate, to meet the needs of the market. 

Ben: [00:26:14] That’s helpful. Yeah, I think that’s where the industry was starting to go. It was making that trend towards all private. But this is really it could expedite that process. 

Ben: [00:26:26] Now, in terms of the actual market, where do you see the cap rates going? And are you more focused on IRR? 

Josh Kochek: [00:26:35] So as long term holders of the assets, we tend not to focus on IRR as much as people that may trade in and out of these things, once we buy something, we endeavor to own it for it’s useful life. And then if it’s in a good market, we will take those beds and we’ll build a new building on the market with it. So we really view this as a forever hold in the things that we do. So we’re more focused on cap rate in terms of our evaluation than we are IRR. 

Josh Kochek: [00:27:05] So I would tell you, there’s the expectation and then there’s the reality. The expectation is if debt is increasing in cost. The cap rates of the assets should follow that lead. Correct. So as we’ve seen, that is going up 25 or 50 basis points in some case would stand to reason that you should expect a similar reaction on the purchase of the buildings. To date, we have not seen sellers giving discounts. And we’ve seen market values stay relatively stable on the things that are either in process or that are coming to market now with performance dips that may occur March through June of this year. Are you resetting the cap off for that performance or are you looking at a historical basis or are you looking at a pro forma basis? That’s really the million dollar question in terms of valuation and cap rate. So I think you’ll see some discount to fully stabilized value, not necessarily being driven by a change in cap rates, but more driven by any kind of performance related issues that come out of the early period of the pandemic. We think it will be rectified. And that’s why we think right now is a really good buying opportunity. To the extent that you’re able to capitalize on that dip in value, but not necessarily a change in cap rate, if that makes sense. 

Brandon: [00:28:30] Yeah. So you’re just saying it’s not necessarily a cost of capital issue. It’s more directly in line with the operational the operations within the facility. 

Josh Kochek: [00:28:43] I think that’s right. Yeah. I don’t think I mean Senwell sells a lot of properties and you guys work closely with sellers. I haven’t seen many fire sales come to the market. 

Brandon: [00:28:54] It’s safe to say as of today. 

Josh Kochek: [00:28:57] Yeah. So could it be the case going forward? Perhaps if people have difficulty refinancing, if the pandemic affects performance longer than anticipated or some of these things could change that dynamic. But I think people generally see this as a short duration in terms of impact and don’t necessarily want to sell at a discount just given that it should hopefully be relatively short duration of impact. 

Ben: [00:29:29] Well, Stephen, Josh, thank you so much for joining us today. I think this was all extremely valuable information. What’s the best way that someone can get in touch with Hana 2.0? 

Steve Levin: [00:29:41] Yeah, I think the best way is so we have a Web site. It’s hana2pg.com. We have, you know, all of our information’s, there phone numbers contact a little bit about the company and a statement from our CEO, Craig Bernfield. And that’s probably the best way. You know, obviously, we’re cleared out the office as yet, but hopefully things can turn around. We’ll be back in our office in Chicago at 1. 

Steve Levin: [00:30:09] North Wacker and other than that you will have our contact information, phone numbers on the website. And that’s a great spot to get familiar with who we are. 

Brandon: [00:30:19] We’ll be sure to add that link to the Web site and our show notes as well. 

All: [00:30:26] Great. Thank you. Yeah. Thanks so much for having us. Thanks for being on the show. Take care, guys. Bye bye. Have a great day. 

Ben: [00:30:34] Welcome to the What You Got segment of the show. This is Ben Bohland. What is this segment you ask? I’ll tell you what it is. Here at Senwell Senior Investment Advisors. We are always getting the same question any time that we have a conversation with anybody in the market. And that is what you got. So we want to bring this platform to the forefront and basically promote any opportunities that we do have available so that anybody listening can maybe take advantage of that and hopefully find value in it. So with this particular first what you got segment I want to showcase just to an extremely unique opportunity in the greenhouse project model. Have you guys heard of this? This is some model that I think was ahead of its time, given what’s currently going on in today’s environment with Covid so Dr. Bill Thomas was the one that came up with this idea back in the early 2000s, and the first greenhouse was built in 2003 in Tupelo, Mississippi. 

Ben: [00:31:39] So what this is, it’s really taking that, the institutional model and moving it to a small house setting, whether that’s skilled or assisted living. 

Ben: [00:31:50] But it’s really unique in that, first of all, everybody has their own private individual room, individual bathroom, which isn’t that unique. But if you’re actually looking at these houses, if you’re driving by, if you’re walking by, you can’t tell this greenhouse home from any other home. The only difference is maybe it’s a little bit bigger because these are typically 10 to 12 different residents and patients that are in these homes max. And, you come outside of your own room and there’s a full kitchen, there’s family room, there’s a dining room, and everybody plays their part. Some of them even do chores. And they help with the dishes and laundry and all that. It really just gives them a sense of community and it makes them feel like they’re still a part of something and including that neighborhood. So given that today’s environment with covid going on, if you have a family that wants to put mom or dad into a nursing home, this could be a really good opportunity because you have an option of this home has 12 people in here compared to a 100 bed facility. It might make an easier decision. So this particular asset is 100 percent occupied. 

Ben: [00:33:07] As of last week and I’m recording this on June ninth. So one hundred percent occupied and it’s brand new. These homes were built within the last year or two. 

Ben: [00:33:19] So there’s a community this opportunity has a community of these homes, multiple homes, anywhere between 10 to 12 beds. 

Ben: [00:33:28] This is cash flowing and it’s stabilized. They did such a good job at getting this thing built. Getting it filled up. And now it’s completely stabilized. And it is a skilled nursing mix with high, private and high Medicare. There’s a little bit of Medicaid, but not much. Most of it is private and Medicare. And their goal is to be all private and Medicare. So it is in the Midwest. And I feel like it’s a great opportunity given the current times and it’s cash flowing and stabilized. If you’d like to discuss this opportunity further, feel free to email me directly at ben@senwelladvisors.com. ben@senwelladvisors.com. Hopefully you’ve got some value out of this. And you all have a great week. Take care. 

[00:34:18] Thank you for listening to the Investment Opportunity podcast. If you want to hear more about investing in the skilled nursing and seniors housing industry, head to our Web site at www.senwelladvisors.com/podcast

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