Seniors Housing Weekly Update - Summer M&A Activity

September 2, 2014

 

September 2, 2014. 60 Seconds with Steve Monroe.  American Realty Capital closes the summer with a flurry of seniors housing acquisitions....

Summer M&A Activity

So, what were you doing during the month of August? I know I got away for just a few long weekends, but we are not sure about the folks at American Realty Capital Healthcare Trust. After agreeing to sell their first REIT, which went public a few months ago, to Ventas, they are wasting no time with ARC-2. While some of you were at the beach, they were closing two portfolio acquisitions of 12 and 14 senior living properties each, plus three individual property acquisitions, with prices ranging from $214,000 per unit to $350,000 per unit. One of the portfolios has an extra property that will close at a later date, so it brings the total to 30 buildings and over $300 million of transaction value. Why the high prices? The 12-property portfolio and the one-offs all involved communities built in the past 10 years or so, and the occupancy rates range from 92% to 98%. And as could be expected, the cap rates were close to 7.0%. Can you hear Ventas knocking at the door again?

 

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