Seniors Housing Weekly Update - A New Look At Seniors Housing Property Valuations

July 31, 2012


July 31, 2012. 60 Seconds with Steve Monroe. When separating out the Class A properties from the B properties, the results are compelling........


A New Look At Seniors Housing Property Valuations
When we released the 17th edition of our annual Senior Care Acquisition Report last March, we included several new statistics, including breaking down the acquisition market prices by quartile. Part of the reason was to differentiate between the per- unit and per-bed prices of the top quartile properties from the rest of the market to show at what levels “quality” trades at. We have just completed a further study of the assisted and independent living market by dividing the sales into Class A and Class B properties for the two-year period from July 1, 2010 to June 30, 2012. The results, while not necessarily surprising, are compelling. Not only did the A properties sell for an average price about double the B properties, but the average cap rate of the A properties, whether for assisted living, independent living, or AL and IL properties combined, was 150 basis points lower than it was for the B properties. The full analysis appears in this month’s SeniorCare Investor.


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Variables Used?

Nice piece. It would be interesting to see the variables you used to differentiate between A and B properties. Quality factors? Location? Age? Cash flow?

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