Skilled nursing dealmaking continues to be strong, average price per unit hits $78,000

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The trend of strong merger and acquisition activity in the senior housing market has not abated, with the average price per skilled nursing unit up 7% from a year ago. This is according to the latest quarterly figures from business intelligence firm Irving Levin Associates Inc.

The average per-bed price for SNFs reached $78,400 as of Sept. 30, up from $73,300 a year earlier, the report states.

The average price has risen largely due to high-dollar deals, according to an Irving Levin press release issued Thursday. There were five SNF acquisitions priced at more than $100,000 per bed in 2012, but there were 11 such deals in the first three quarters of this year.

“Buyers are positioning themselves for the changing post-acute care market by purchasing those skilled nursing facilities with the most potential to increase their subacute census and drive managed care business,” stated report editor Stephen M. Monroe.

Assisted living has seen the per-unit price increase by an even more dramatic 30.5%, to reach $196,600. Capitalization rates also have been decreasing for every senior living segment, the report notes.

The quarterly report is a supplement to Irving Levin's 2014 Senior Care Acquisition Report. Released in April, that report said 225 deals occurred in 2013, making it a record year for M&A activity.