Last week, we wrote that while the average price per unit for IL communities fell by over $30,000 from the calendar year 2014 to the four quarters ending Q2:15, the average cap rate remained at 7.4%. Meanwhile, the inverse was true for the assisted living market. The average price per unit for AL communities rose slightly from $188,700 to $189,500, just a 0.4% change, over the same period, but the average cap rate rose 15 basis points from 7.75% in 2014 to 7.9% in the four quarters ending Q2:15. This could partially be explained by the fact that the IL market can be more mercurial than the AL market, as there is a more constant and stable need for assisted living. But to explain the rise in cap rates, the quality of AL properties sold in the last four quarters may have dropped. Perhaps there are more buyers out there who want in on the business so much, that they won’t wait to buy the best properties, but rather settle for a lesser quality one, for an appropriate price, and cap rate.