Assisted Living Commands a Portfolio Premium in 2017
Every year in our Senior Care Acquisition Report, we try to determine what a market “portfolio premium” would be for assisted living communities, with a portfolio including three or more properties. However, just because there is a portfolio of properties, it doesn’t always mean that the buyer will pay more for them. The premium has to do with both the number of properties as well as the quality. In most years, there is a sizable difference in the average price per unit for portfolios compared with smaller purchases. In 2016, we recorded a drop in the premium to $45,700 per unit, or a 4% drop from 2015’s $47,600 per unit premium. Both premiums fall short of the record ($69,000 per unit in... Read More »The Price of Empty Units in Assisted Living
When comparing stabilized and non-stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%), there is a clear difference in the price per unit, according to the 2017 Senior Care Acquisition Report. The gap between stabilized and non-stabilized properties grew year over year from $61,500 per unit in 2015 ($139,100 per unit for non-stabilized and $200,600 per unit for stabilized) to $87,200 in 2016 ($147,700 per unit for non-stabilized and $234,900 per unit for stabilized). That does not surpass the disparity recorded in 2014, however, when stabilized properties sold for $230,300 per unit compared with just $139,000 per unit for... Read More »Paying Up for “A” Quality in Independent Living
Last week, we examined what buyers paid for “A” quality assisted living properties versus “B” quality, according to the 22nd Edition of The Senior Care Acquisition Report. But what about independent living, which has not received the same attention that assisted living has in recent years and has not seen as much new construction (which are often categorized as “A” properties). Nevertheless, hitting new heights this year was the average price paid for “A” quality independent living communities. Those properties, which we determine on several factors including age, size and location, sold for an average of $285,800 per unit, or about $8,000 per unit higher than in 2015. “B” properties, on... Read More »What to Pay For an “A” Quality Assisted Living Community
It is becoming increasingly apparent that there are two separate markets for assisted living properties between those we consider “A” properties and those that are “B” properties. We first separated out these two markets in 2012 (and did so again in our just-published 2017 Senior Care Acquisition Report) based on the properties’ age, size and location, and while there will likely be some “A” communities in with the “B” communities (and the other way around), it all evens out. The difference was stark in 2016, with “A” properties averaging $265,700 per unit, compared with $94,200 per unit for “B” properties. That difference of $171,500 per unit easily beats out 2015’s $110,100 per unit gap... Read More »Occupancy’s Impact on Skilled Nursing Facility Prices
The skilled nursing industry has experienced consistent declines in average occupancy over the past few years, sinking to a new low of 81.8% in the fourth quarter of 2016, according to NIC’s latest Skilled Nursing Data Report. It should be said that the actual level of occupancy has become less important for skilled nursing facilities because the focus has been centered on short-term-stay patients. Almost by definition, because of the high level of turnover with these patients, and the inability to consistently and constantly fill those beds on discharge, overall occupancy tends to suffer. But since these patients are more profitable than longer stay patients, providers have not worried as... Read More »Schedule a demo
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