Occupancy Down
NIC MAP reported their preliminary first quarter results for occupancy and rate trends. With the relatively mild winter, the normal first quarter downward trend was somewhat muted this year, with assisted living occupancy dropping just 29 basis points sequentially and year-over-year for stabilized properties in all markets. Trailing 12-month absorption as a percent of supply for assisted living was 3.9%, up from 3.2% in the fourth quarter and 3.0% in the year-ago quarter. And construction starts as a percent of supply dropped both sequentially and year-over-year. Most people seem to have interpreted this to mean that supply and demand are catching up to each other. Anecdotally, we continue... Read More »
Renovating the Old
We have talked about the difficulties of 40-year old nursing facilities, but 34-year old CCRCs can have similar problems. Such was the case with Kingswood Senior Living Community located in Kansas City, Missouri, which was built in 1982. Because of its age and lack of updates over the years, 40% of its IL units were obsolete, it had only 14 AL units and there were no memory care units on the campus. In addition, the current manager, Life Care Services, had difficulty filling the 82-bed skilled nursing facility. Nothing that $51.77 in tax-exempt bond financing can’t fix. With the help of LCS Development, a majority of the 80 unmarketable apartments were repurposed and converted into 30 new... Read More »
Stat of the Day
You should know by now that skilled nursing facilities set a new record for the average price per bed sold of $85,900 in 2015, shattering the record set in 2014. What was driving this increase was the large number of high-priced sales, with a record number of transactions priced above $100,000 per bed. Because of this, the upper quartile price of skilled nursing facilities last year was $123,000 per bed, meaning that 25% of the sales were at this price or higher. Meanwhile, the lower quartile was just $44,000 per bed, meaning that 25% sold at this price or lower. We suspect many of these were more than 40 years old. These and many more statistics can be found in our just released Senior... Read More »
The votes are in!
We held our annual Senior Care M&A Outlook webinar last Thursday, which featured a discussion between our editor Steve Monroe, John Cobb, CIO of Ventas, Inc., Scott Kremeier, Senior Vice President at Houlihan Lokey, and Ryan Maconachy, Senior Managing Director at HFF. In it, the panelists discussed how the seniors housing and care M&A market fared in 2015 (based on statistics in our soon-to-be released Senior Care Acquisition Report, 21st Edition) as well as their thoughts on what would happen in 2016. We asked the audience their thoughts on the 2016 M&A market too. First, when asked “Will senior care M&A slow this year?” a majority of attendees (58%) thought that it would,... Read More »
2015 SNF and AL prices hit new heights
After a record-setting year across all senior care sectors in 2014, average skilled nursing facility prices soared again to a new record of $85,900 per bed, or 12% higher than in 2014. In the assisted living market, the average price paid per unit just topped the previous record set in 2014 by less than 1.0%, reaching $189,200 per unit in 2015. The only senior care sector to drop was independent living, which was coming off a particularly strong 2014 that saw a number of unusually high-valued deals. These changes came in a year that saw 357 publicly announced transactions, up 18% from 2014. Read More »Schedule a demo
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