Seniors housing and care acquisitions came to a standstill, waiting for any positive news.
So, I can’t remember the last time we went a full week without one seniors housing and care acquisition announcement. Perhaps in the depths of The Great Recession, but that was more than 10 years ago.
Last week, there was nada, zippo, and it seemed to carry over into the start of this week. If you were not approaching the finish line by the end of March, for most deals, they just never crossed. There are a lot of disappointed sellers and brokers, but we have to assume the deals have just been put on hold until some degree of normalcy returns. But it may be a new normal, and lenders and buyers may have to get used to it. And, there may be some price adjustments.
From various surveys I have recently seen, buyers still plan to transact through the rest of the year. There is still plenty of equity waiting to be invested. And, there are lenders willing to step up, just not today if you have 20 confirmed COVID cases in your building. That number will be declining, and may be declining quickly through the end of next month as testing expands and the infection rate begins to slow in the hardest hit areas. Not to mention enhanced protocols in place.
Right now, I am actually more worried about the worsening economy than the impact of COVID-19, even though I realize they go hand in hand. We just have to figure out how to work together and overcome the obstacles, as large as they may seem today.
