The second quarter of this year was particularly active for buyers of senior housing and care properties.
During the quarter, 106 publicly announced senior housing and care acquisitions took place, according to new data from Irving Levin Associates. That’s more than the 81 that occurred in the first quarter of 2018 and the 78 that occurred in the second quarter of last year.
The dollar value of the transactions that occurred in the second quarter of 2018 was approximately $6.3 billion. That’s almost 3.5 times the dollar value of the transactions that took place in the prior quarter.
Portfolio sales of three or more properties drove the acquisition volume last quarter, according to Irving Levin. In fact, portfolio sales comprised 25% of all of the deals. Additionally, more than 55% of transactions in the second quarter involved the sale of skilled nursing facilities; the other 45% involved just private-pay senior housing communities.
Private buyers were also especially active last quarter, as private operating companies made up almost half of all purchasers. Publicly traded operating companies, meanwhile, accounted for fewer than 5% of the 106 buyers. Private equity and private investors comprised 29% of buyers, and real estate investment trusts (REITs) comprised slightly more than 12%.
Written by Mary Kate Nelson