The Stratification of the Skilled Nursing Facility Market
We have talked a lot of skilled nursing prices reaching an unprecedented peak in 2016, at $99,200 per bed, per our just-released 2017 Senior Care Acquisition Report. But even though the average price per bed has risen to extremely high levels, there remains a large difference between those newly built skilled nursing facilities, as well as those with a very strong Medicare census, compared with lower-quality and older properties. In 2015, the upper quartile for skilled nursing pricing was $123,000 per bed, meaning that 25% of the skilled nursing properties sold were transacted above this price level. The upper quartile jumped again in 2016, this time by 15% to $143,300 per bed. Just five... Read More »
Senior Care And Labor
No talking about deals, values, stock prices and cap rates, not even Brookdale Senior Living. It’s time to talk labor. I know you usually hear me talking about deals, values, stock prices and cap rates, and let’s not forget Brookdale Senior Living. But I am going to digress a bit from the usual. The entire seniors housing and care business seems to be avoiding what I really believe is going to be a labor meltdown. Cost is one thing, and it is already impacting the bottom line of many providers. But the quality, the training, or lack of, is just something that I think is still missing, and it will begin to poke holes into the marketing pitch for seniors housing and care. For all of... Read More »
What Are the Memory Care Investors Saying?
On March 9th, we hosted a webinar entitled “Building or Buying Memory Care,” with moderator Steve Monroe and panelists Clint Malin of LTC Properties, Mark Myers of Marcus & Millichap, Michael Stoller of LCB Senior Living and Matthew Turner of MorningStar Senior Living. The panelists covered a range of topics (you can listen to the discussion here) including the risks of overbuilding, effectiveness of memory care conversions and fill-up risk, among others. But our audience also chimed in, answering three poll questions throughout the webinar. First, when asked if they would build stand-alone MC, assisted living with MC or stand-alone AL, 60% preferred the mix, 32% would build... Read More »
Ventas Not interested in Brookdale, but Diversicare Soars
We may never know if Ventas was really interested in buying Brookdale Senior Living, but it made little sense. We may never know if Ventas was really interested in buying Brookdale Senior Living, but it was just something we did not think made any sense, so we are glad they publicly said they are not pursuing it. The only thing that made possible sense was to buy a 100 or so properties. But again, would it really be worth it? I still think there are suitors sniffing around, but not at prices that will get shareholders excited. Unless a Chinese investor really wants a large toehold in the U.S. Moving on, have you noticed what has been happening with Diversicare Health Services? Late last... Read More »
Memory Care: Buy or Build?
Investors in seniors housing have been flocking to the memory care market, as the sector has experienced unprecedented growth since the Great Recession. They are attracted to its need-based demand, higher rents, private payors and apparent dearth in supply in a number of markets (though given the amount of construction in the last few years that is becoming less and less true). But those investors that are interested in getting into or expanding their holdings in this market are faced with a question: do they build memory care, or buy? That is the topic of our upcoming webinar this Thursday at 1PM aptly named, “Buying or Building Memory Care.” Our moderator Steve Monroe and panelists Clint... Read More »Schedule a demo
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