As temperatures soared this summer, so did the dealmaking in the Long-Term Care sector. On the back of a solid July (27 deals total), August shattered the previous record-high of 37 announced deals for the month set in 2015 and the 27 deals recorded in August 2017 with an astonishing, and still-growing, 46 transactions.
That puts the third quarter on track to most likely top Q3:15’s 99 deals for the sector. What has gotten into buyers this summer? Riding a wave of high consumer confidence and low interest rates, and in the face of numerous industry headwinds, investors are still confident in seniors housing and care properties to provide their desired returns.
That is coupled with plenty of owners looking to cash out when seniors housing and care prices remain relatively high.
Indeed, assisted living prices are still near record highs, at $221,250 per unit in 2017, according to the 23rd Edition of The Senior Care Acquisition Report, while independent living prices shot up to $230,100 per unit, also near the all-time high. Skilled nursing prices have settled from the record-high average recorded a couple of years ago (near $100,000 per bed) to $81,350 per bed, which is historically high, nonetheless.
