We first separated out the “A” properties from the “B” properties in 2012, based on the properties’ age, size and location. While there will likely be some “A” communities mixed in with the “B” communities (and the other way around), it all evens out. And when looking at the numbers, these are clearly two different markets. […]
We have mentioned previously that 2014 saw an unusually large number of high-valued transactions, with the extreme top-end prices driving the average seniors housing prices to historic levels, as well as pushing down cap rates to new lows. But in 2015, while there were proportionally fewer of both the highest-priced deals and the lowest-priced deals […]
In our quest to try to determine the truest “market cap rate” for the seniors housing market, for the first time in 2014 we decided to weight each transaction’s cap rate based on its number of units. For the seniors housing market (including both assisted living and independent living), whereas the average un-weighted cap rate […]
As prices rise, we would expect cap rates to depress accordingly to reflect the increasing values. However, even though the average price per unit for independent living properties fell 22% from $246,800 in 2014 to $192,900 in 2015, the average IL cap rate dropped by 40 basis points from 7.4% in 2014 to 7.0% in […]
We have spent the last few weeks discussing the skilled nursing market, focusing particularly on the average cap rate falling to near-record lows. But what about the assisted living M&A market? We saw the average price per unit for assisted living communities rise slightly (from $188,700 in 2014 to $189,200 in 2015), and in turn […]
The recent trends of the 10-year Treasury Rate and the average skilled nursing facility cap rates have provided a lot of flexibility for buyers in how they price their acquisitions and negotiate with lenders. After rising from its low in 2012, the average 10-year rate was slowing increasing through 2014 and then dropped a bit […]
Highlighting a growing issue for the country’s aging skilled nursing facility inventory, a facility’s regional advantage may not matter much for owners of facilities in high barrier-to-entry markets looking to maximize value. Surprisingly, the Northeast region, because of its higher average income, property values and barriers to entry, saw the highest average cap rate of […]
In the last couple of years, we have started looking at cap rates based on the size of properties and portfolios acquired. In weighting cap rates by size, we avoid the issue of the cap rate for a 180-bed facility sale being weighted the same as the cap rate for a 60-bed facility sale. Some […]
If skilled nursing facilities sold on average at an all-time record high price of $85,900 per bed, then how did the average 2015 cap rate hold up to history? Well, according to the 21st Edition of The Senior Care Acquisition Report, the average cap rate for skilled nursing transactions dropped 20 basis points to 12.2%, […]
The average price paid for skilled nursing facilities has largely leveled off at around $75,000 per bed, coming to rest at $74,100 per bed for the four quarters ending Q2:15, down from $76,600 per unit in 2014. But while prices have stayed largely the same, the average cap rate fell 40 basis points to 12.0%, […]