Senior Living Investment Brokerage, Inc. is frequently asked if now is the right time to sell assisted living and nursing home assets. Most owners are aware the market is favorable for Sellers, but few actually know their current value. Senior Living Investment Brokerage’s biggest challenge is not convincing owners that the time is right to sell, rather it is getting an audience with them to put together a confidential proposal that determines the value of their assisted living community or nursing home . The M&A market and market indicators make a strong case.
The assisted living market is very aggressive right now. Pricing and deal volume is at an all-time high. Early indication is that July could be another record month. When looking at Seniors Housing, characterized as assisted living/memory care and independent living, pricing has increased significantly over the past few years. According to the Senior Care Acquisition Report, 20th Edition, published by Irving Levin Associates, the average price per unit increased from just over $100,000 per unit to around $200,000 per unit in the last five years. Low cost of capital and significant demand for Seniors Housing, in addition to aging demographics, has caused pricing to skyrocket in a short period of time. Institutional capital is turning to Seniors Housing as a resilient segment to put their money to work. In addition, many regional companies are well capitalized with multiple debt and equity sources to make strategic acquisitions.
How long will it last? Will overbuilding hurt occupancy and the market/values? Will an increase in interest rates hurt values and activity? Please contact Ryan Saul to discuss the current market and how Senior Living Investment Brokerage, Inc. can help.