It should surprise no one that as a seniors housing (assisted living and independent living) community creeps farther away from the day it opened its doors, its value typically falls in turn (this assumes several things, like local competition/demand and the general seniors housing market keeping steady and no significant renovations or additions being made to the building). But did this hold true in 2015? Largely, yes. According to the 21st Senior Care Acquisition Report, Seniors housing communities built in the last five years sold on average for the highest price, at $320,500 per unit. Then came those properties built between six and 10 years ago, which sold on average for $225,100 per unit, nearly $100,000 per unit less than the newest properties (that discrepancy can partly be explained by an increase in memory care development, which typically commands a premium over stand-alone assisted living). That is where the correlation between age of property and average purchase price ended last year, however. In 2015, the oldest-property group (communities built over 15 years ago) actually sold for a higher average price than communities built between 11 and 15 years ago ($153,800 per unit compared to $139,300 per unit). Not all ages take into account renovations (and they would have to be substantial renovations and/or gut rehabs to change the effective age of the building), and there are other factors affecting price like location, size and current operations. But, another reason for this irregularity is the fact that those properties built during the last development boom in the late-1990s, which are more similar to today’s facilities than older, more institutional ones, are starting to enter into that age category.
Senior living communities age too
