Seniors Housing Weekly Update - A Frothy Seniors Housing Market?
October 15, 2013
A Frothy Seniors Housing Market?
The 23rd annual NIC conference was held last week, and with a record number of attendees, capped at 2,100, there would appear to be a bit of froth in the market. There were more lenders and investors than we have seen in years, and supposedly MOB developers from Texas were there as they get ready to plunge into the seniors housing market. But what we like the most is the gossip, and after everyone had their two cents about why Jay Flaherty was fired, they got into the down and dirty of who was buying whom. When totaled, and we are talking about just a handful of deals, the dollar value reached well over $20 billion. The majority of that came from one transaction which seems a bit far-fetched (take a guess), but the few others of a billion here, a billion there, were very much in the realm of possibility. The market is beginning to feel like 2007 all over again, and while that may be fun, it also means some stupid things get done. I know one investor who is patiently licking his lips, waiting for 2018 to 2020 when the current deals need to get refinanced at much higher rates. And that spells discount.