Seniors Housing Weekly Update - Record 4th Quarter Deal Volume
January 8, 2013
Record 4th Quarter Deal Volume
Happy New Year everyone, and let’s hope the acquisition market is as strong in 2013 as it was in 2012. We ended the year with a bang, with one of the most active quarters in recent memory, fueled by a December with more than two dozen deals, many of which closed on the last day of lower capital gains tax rates…no coincidence there. We recorded 60 announced acquisitions in the fourth quarter, up 33% from 2011’s fourth quarter, bringing the year’s total to 189 seniors housing and care deals, or 10% higher than in 2011. That made 2012 the most active year since the 1990s, at least from a deal count perspective. Dollars spent is another matter, ranking fifth on the career list with more than $9.2 billion announced. But the good news is that the average size of the transactions is smaller, which means a more diverse market and not dominated by just a few of the heavy hitters. With low interest rates and improving operating metrics, we expect a strong year again in 2013.