Records reveal seller's market
Operators selling properties saw their best year ever in 2014 — and 2015 could be even better.
At least, that's the collective message from two recent reports sizing up the acquisitions market in this sector.
Assisted living average unit prices hit a record $188,700 per unit last year, a 25% uptick. Average per bed prices for nursing homes jumped 4% to $76,500, which set records in that sector for the second straight year, Irving Levin Associates announced in its 20th annual version of The Senior Care Acquisition Report.
Nearly 300 mergers and acquisitions representing about $26 billion were announced in the senior housing market in 2014. That's up 26% from the prior year.
“Investment demand has been very strong, and as prices go up, more owners are enticed to put their properties on the market,” noted report Editor Stephen Monroe. Willing investors included REITs, private equity firms, pension funds and foreign investors.
Another report from Marcus & Millichap promises “an exceptional” 2015. Both reports cited a recovering economy and capital availability.