If many are hoping for a fundamental shift in the M&A market in 2024, either for more activity, larger deals or Class-A, stabilized properties hitting the market, then January may have offered a glimmer of hope. We recorded 61 publicly announced transactions across the seniors housing and care sectors, according to LevinPro LTC. That is the highest monthly tally since January 2022 when 64 deals were made public. Back then, for some perspective, the 10-year Treasury rate averaged 1.76% that month, as opposed to around 4.0% last month. And liquidity was vastly different, too.
There are also always December closings in the January total, which goes by announcement date, but that is true every January, and yet, the market achieved that volume. However, one- and two-property deals represented 87% of the month’s activity, and there was no surge in Class-A, stabilized property deals, despite a handful of them closing. So, the market dynamics have not completely shifted. But 2024 is already off to its predicted busy start. Let’s hope one extra day in February helps keep it up.
