M&A Market Surges

After a very slow March, April seniors housing and care M&A transactions surged to nearly 50 acquisitions, more than double the number in March.

In the first quarter this year, we averaged about 26 seniors housing and care acquisitions each month for a total of 77 in the quarter. That was close to what we have been seeing in the past few quarters, so nothing out of the ordinary.

That is, until April. Last month we recorded 46 separate acquisitions, or double March’s volume. While it may not be a record, it is awfully close. The number will most likely rise above 50 as more deals come to light.

It is too early to say this represents a trend in renewed M&A activity, but other than some outliers, the pricing was fairly modest across the spectrum. There were only a handful of deals above $200,000 per unit, and several below $60,000 per bed or unit. Skilled nursing facilities are selling, but many of them appear to be at the lower end and definitely value-add opportunities.

So, despite the headwinds and the 10-year Treasury hovering near 3.0%, investment appetite is back. It’s just a question of how long it will last.


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