60 Seconds with Steve

New Senior Care M&A Data

Assisted living per-unit prices rise for the latest four quarters, while skilled nursing remains the same.

It was a relatively slow first quarter with regard to publicly announced seniors housing and care acquisitions, other than some old large deals announced last year that finally closed in the quarter. On a rolling four quarters basis, the average price for assisted living jumped to $210,300 per unit for the period ended March 31, compared with $193,650 per unit for calendar year 2016. The average cap rate remained at 8.5% but with an obvious wide range. Meanwhile, independent living did the reverse, dropping to $208,900 per unit for the four quarters ended March 31 compared with $228,200 per unit for calendar year 2016. The IL average cap rate increased by 20 basis points to 7.4%.

In the skilled nursing sector, we have been waiting for prices to come down, but the trailing four quarters didn’t budge, coming in at $99,300 per bed, the same as last year. And average SNF cap rates only rose 10 basis points to 12.3%. So despite worries on labor costs, development and interest rates, buyers in general are plowing ahead, but mostly in the AL and IL market.



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