Stay up-to-date on skilled nursing and assisted living businesses, retirement communities, REITs and home health care with The SeniorCare Investor newsletter. For over 50 years, The SeniorCare Investor has been tracking mergers & acquisitions statistics and trends, equity & debt financings, bankruptcies and corporate shake-ups in the senior care market.
One would expect that in bull markets, the seniors housing (independent and assisted living) cap rate would fall, while the 10-year treasury rate would rise, making the spread between the two smaller, and vice versa for bear markets. But we have been in an historically low interest rate period throughout most of 2017, while at […]
One thing on the minds of many is that in these heady times in senior care M&A and development, investors are faced with a dilemma: whether to build, or buy (or both). Ben Swett here filling in for Steve Monroe, who is currently wandering around the Argentum conference in San Diego. One thing on the […]
Did size matter when it came to pricing a seniors housing (independent living and assisted living) community? Yes, it did, as the difference in average cap rates from the smallest communities (under 50 units) and the larger communities (90 units and above) grew to its widest gulf ever recorded (back to 2003) at 180 basis […]
The average seniors housing (independent living and assisted living, combined) cap rate resumed its downward trend that began after the Great Recession and strayed only one year (in 2016), hitting a new record low too, at 7.5%, according to the 23rd Edition of The Senior Care Acquisition Report. However, when weighted by units, the average […]
On Thursday April 12, 2018, we hosted a webinar titled “Pricing “A” vs. “B” Seniors Housing Properties,” where moderator Steve Monroe and panelists Richard Swartz of Cushman & Wakefield, Wayne Kaplan of Premier Senior Living Group and Paul Froning of Focus Healthcare Partners spent 90 minutes detailing the ins and outs of investing in these […]
Buyers are increasingly prizing stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%) over non-stabilized communities when making acquisitions. The gap between the two property types continued to widen in 2017, growing from $87,200 per unit in 2016 ($147,700 per unit for non-stabilized properties and $234,900 per […]
Given the continual decline in census for the nation’s nursing facilities, it is no longer clear where “stabilized” is in today’s market, especially as lengths of stay have shortened. For your reference, we have traditionally defined stabilized occupancy for skilled nursing facilities as 85% and higher. With that said, nursing facilities with stabilized occupancy declined […]
For the first time in our Senior Care Acquisition Report (with the 23rd Edition just published), we decided to take a look at how investors priced in the risk purchasing a newer seniors housing community, versus an older one. As many of you know, the assisted living product did not develop in earnest until the […]
It shouldn’t come as a surprise that in 2017, the oldest seniors housing properties (independent living and assisted living properties built before 2002) were valued the lowest and the newest properties (built after 2011) were valued the highest, according to the just-published 2018 Senior Care Acquisition Report. We see a similar correlation most years, but […]
One would think that the newer skilled nursing facilities would sell with lower cap rates, but that has not always been the case. As can be seen in the graph below (from the just-published 23rd Edition of The Senior Care Acquisition Report), in three of the past five years those nursing facilities over 40 years […]