Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market.
It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the liquidity in the market and what we may expect in the coming weeks.
Well, we breathed a sigh of relief when Welltower announced two separate transactions for seniors housing portfolios completed by Newmark Knight Frank with a total value close to $800 million. When the MOBs are added in, the total comes to about $1.3 billion.
More details on these transactions appear below and in the upcoming June issue of The SeniorCare Investor, but with a blended cap rate of 5.8% on trailing 12 months NOI, and the negotiations for one of the deals starting after March 15 (lock-down time), well, it made us feel better than we had in many weeks. And Newmark apparently has more deals to come.
A few deals doesn’t make for a complete market comeback, but it does breathe some life into it, and provides a bit of the confidence we all so desperately want to see.
