Seniors Housing Business

FEB-MAR 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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CELEBRATING 20 YEARS OF CLOSING DEALS WITH WORLD-CLASS SERVICE. And JCH is just getting started. National Investment Center for Seniors Housing & Care Put an Industry Icon to work for you − visit www.theJCHgroup.com or call 888.916.1212 and let us help you sell or purchase a facility. Nick Stahler 714.463.1663 Nick@theJCHgroup.com Shep Roylance 805.633.4649 Shep@shepJCH.com Jim Hazzard 714.463.1677 Jim@theJCHgroup.com Visit us at the ASHA Conference in Orlando January 31- February 2. Contact us to set up a meeting. The only real estate brokerage focusing solely on the Seniors Housing Market for 20 consecutive years. In an industry filled with commercial real estate bro- kerage Goliaths, JCH Senior Housing Investment Brokerage has been its David, thriving as a boutique since 1998. Husband-and-wife team Jim and Cindy Hazzard founded the brokerage firm with a mission to emphasize its focused specialization on the seniors housing market instead of brokerage size. Knowledge is Power JCH makes certain their entire team is well versed in the vital workings of seniors housing operations. Every broker in the company is required to attain an Assisted Living Administrator Certificate, and most moved to JCH from a previous career with owners and operators. Jim himself worked for the predecessor company to one-time skilled nursing giant Kindred Healthcare. "Anyone that's asked to work with me, the first thing I have them do is get their Administration Certificate so they un- derstand the ins and outs of operating a facility," says Cindy. "That's key to understanding our clients and aligning ourselves with our clients' interests." Smaller and Nimbler, with a Personal Touch Measured against commercial real estate Goliaths, JCH is a small brokerage firm, but it is proud to be called a "boutique." The company's average transac- tion is $10 million to $15 million for a single property, and in excess of $100 million for a portfolio. Although Jim admits he's thought of making the company larger — more brokers, more offices — he always comes back to wanting the personal involvement and quality control that only a smaller company can offer. "As a boutique team, we have more flexibility than the larger shops," says Shep Roylance. "It makes us more nim- ble and aligns our commitment to the industry with our clients." When clients hire JCH they don't get just get the services of a broker or two — they get the whole company. "When you hire us, you hire the entire team," notes Nick Stahler. "Our philosophy is that of a team, and we work together as a team," adds Cindy. "By doing that it allows us to keep control of situa- tions and for the deal process to be very intimate." Off-market deal experts A unique advantage to being a boutique is the ability to work quietly and behind the scenes. JCH rarely puts out a property for bids in the traditional way, except in cases where it's mandated to do so by the seller or a court such as bankruptcy. Instead, the brokers only market the asset to a select group of potential buyers. That group is specifically chosen based on its ability to buy and own/operate the community effectively. "We can identify the correct buyer. We don't have to show it to 5,000 people," says Jim. "We'll know four or five buyers for whom it's a match."With a small- er pool of buyers, JCH can also control how many prospective buyers are aware the property is even for sale. Confidentiality is key to keeping a transaction flowing smoothly, according to the JCH brokers. If employees and residents know that a community is up for sale, they'll become unsure of their future. When that happens, performance on nearly every metric can begin to slip. "It starts to affect the leadership all the way down to the care providers and the maintenance people," "Quality of care can drop off, census will slow down. It has a ripple effect on the families and the communities. You really need to be careful." "We know we've done our job when the frontline staff only knows about a sale when we're introducing the buyers," says Jim. By marketing the asset to a select group of buyers, JCH also believes that process will lead to realistic, actionable bids. Although it's unlikely to create a bidding war, limiting the buyer pool ensures that all the offers received are genuine and in good faith. The smaller number of bids also gives all parties the time to complete the necessary underwriting, proper- ty tours and due diligence rather than spend that time negotiating terms, says Roylance. 'One-stop transaction shop' Because of the team's vast background in seniors hous- ing (110 years combined experience), JCH promotes itself as a start-to-finish solution for buyers and sellers. The company can assist with everything from financ- ing to legal support. "Many times we've been hired because of our net- work," says Stahler. "We can become the one-stop transaction shop. We can help place the debt, equi- ty, legal counsel, insurance providers — you name it. And our platform is nationwide." The JCH team emphasizes the need for having seniors housing specialists involved in every part of a sale. Although seniors housing is a segment of the com- mercial real estate industry, those who work in other sectors are not versed in the niche's intricacies. The hiring specialists make sure everyone's on the same page. As Jim puts it, "the best way to solve a prob- lem is to avoid it in the first place." "A loan in seniors housing is not one that's typical of multifamily financ- ing," adds Stahler. "There are much different perfor- mance covenants. It's a completely different world versus other types of real estate." 20 years and counting After 20 years of exclusively serving clients of Assisted Living, Independent Living, Skilled Nursing, CCRC's and Memory Care Facilities, Stahler has found that the most successful owners and operators tend to be the mid-size, regional compa- nies, rather than industry goliaths or mom-and-pops. And for 20 years providing specialized support to its seniors housing clients has been JCH's focus. JCH Senior Housing Investment Brokerage is a full-service real estate brokerage of experts focused on the long-term care and seniors housing sector, delivering world-class service and results since 1998.

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