Survey: Senior Housing Portfolios Draw Bigger Premiums than Stand-Alones

Senior housing assets that are packaged as a portfolio sell for more than if they were sold on a stand-alone basis, according to a recent survey conducted by Integra Realty Resources.

The commercial real estate consulting and valuation firm gathered results from 12 brokers and buyers who responded to a question regarding the presence and extent of a portfolio premium for a portfolio consisting of six “Class A” independent/assisted living assets each worth about $15 million.



Source: Integra Realty Resources

A majority 83% responded that a premium did indeed exist, of about 5%, while 17% said the premium was more than 5%.

It’s important to note that the larger and more homogenous the portfolio (meaning properties in a similar asset class), the larger the premium could be, Integra told SHN. However, “for a smaller portfolio, or one with assets exhibiting a mix of care types and quality, no premium may exist.”


These signs point to sellers being able to command a higher price for aggregated properties, the firm continued.

Written by Alyssa Gerace