With one month to go, and a busy one at that, we have surpassed 300 announced mergers and acquisitions, setting a new record.
We have just passed last year’s total number of publicly announced seniors housing and care acquisitions, breaking through the 300-deal mark as of November 30, with one month left to go. I am beginning to wonder whether the binding of our annual Senior Care Acquisition Report will be strong enough to contain what is sure to be more than 300 pages of charts and deals covering 2015. So, are we at a market peak or not? Certainly not in terms of investor interest in buying properties across the seniors housing and care spectrum. But pricing most definitely has hit its peak in general. Haven’t you heard of the portfolio deals that have been pulled from the market? The sellers’ couldn’t “get their price.” Were they unrealistic? Would they only be interested in selling if they could get their price? Only they and their advisors know for sure, but one thing is certain, they missed the market, at least in this cycle. Now, on the skilled nursing side, there are people saying this market is getting way ahead of itself with all the sales at $100,000 per bed and higher. But one always has to keep in mind, high prices relative to what? Old SNFs, or LTACs and rehab hospitals? Time will tell.
