Pricing “A” vs. “B” Seniors Housing Properties
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 two very different markets. The panel discussed current pricing of seniors housing properties (broken out between “A” and “B” properties), operating statistics (like occupancy, operating margin and NOI per unit) and cap rates. But they also covered who is buying “A” and “B” properties, and who is selling them, in addition to the risks and rewards of... Read More »
What to Pay for a Stabilized Assisted Living Community
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 unit for stabilized properties) to $128,500 per unit in 2017 ($126,200 per unit for non-stabilized and $254,700 per unit for stabilized), according to the 23rd Edition of The Senior Care Acquisition Report. The widening gulf continues a consistent theme in 2017 of investors continuing to pay up for quality and existing... Read More »
Paying For Stabilized Versus Non-Stabilized SNFs
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 in value from an average of $114,700 per bed in 2016 to $93,700 per bed in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. This makes sense given the overall deterioration of the market in 2017. For non-stabilized nursing facilities, the reverse occurred. While it might... Read More »
How Old Is Too Old In Seniors Housing?
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 1990s, when at the end of the 20th century, the industry experienced a boom in development, mostly on the assisted living side. Since then, the tastes of seniors have changed, and what may have been a luxury “A” property in 2000 may not be one now. We have also more recently undergone a development boom, once again primarily in the assisted living/memory care sector. Many of these... Read More »
Pricing Age Into Seniors Housing Sales
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 it is important to note that not all ages take into account renovations (and they would have to be substantial renovations and/or gut rehabs to change the effective age of the building) or additions (often of memory care units). However, it is generally true that in order to better compete in today’s senior living market, investors... Read More »Schedule a demo
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