The average skilled nursing facility price per bed set a record for the fourth year in a row, and the average assisted living facility price per unit set a record for the third straight year.
What can I say, other than I am a bit astounded? We have tallied the results of the seniors housing and care M&A market for 2016, and there were a few records set, again. First of all, as I alluded to last week, the skilled nursing facility market set a record for the fourth straight year, with the average price reaching $99,200 per bed, a 15% increase over the previous record set in 2015. Why such an increase? A record number of skilled nursing facilities that sold for more than $100,000 per bed.
Sales in the assisted living market also set a record, for the third year in a row. The average price was $193,650 per unit, a 2% increase over 2015’s record. It didn’t hurt that there were 23 communities that sold for more than $300,000 per unit. On the flip side, the median price per unit came in at its lowest of the past three years, as there seemed to be an increase in “value-add” transactions as some buyers have been priced out of the market.
All the details will be published in our Senior Care Acquisition Report next month.
