April 7, 2026 – 60 Seconds with Ben Swett: Talking Construction and Cap Rates in Nashville
Spring NIC in Nashville drew record attendance and strong optimism, despite macro concerns. Deal flow is robust, pointing to another M&A record in 2026. Rising Class-A pricing may revive construction, while intense buyer demand is pushing some cap rates below 6%, especially as investors compete with REITs for top assets.
Transcript
Another Spring NIC is in the books, and it was great to see so many industry friends in Nashville, which was a great setting for the conference, we must say. And it was another record attendance, with around 500 first-time attendees too. That surely is a sign of seniors housing’s appeal to potential new entrants. And they added to the positive energy in the room, overcoming some worried chatter about the Middle East, oil’s impact on inflation and the recent surge in the 10-Year Treasury Rate.
There are plenty of deals, big and small, going around, leaving us more confident that we will break another M&A record in 2026. What we also left Nashville more confident about, which surprised us, was that construction may be coming back sooner than expected. That is primarily driven by the fast rise in per-unit prices for Class-A communities, giving builders the comps needed to justify their construction costs and expected returns.
Our ears also perked up at several deals we heard were being valued below 6% cap rates, both on trailing and on year-one financials. And the cap rates were mostly pushed downwards by the intense buyer demand and building frustration among some buyers who keep losing deals to the REITs. Barring a sudden and sustained rise in interest rates, competition for these best-in-class assets should keep rising.
Burning Questions for NIC Attendees
Heading into the 2026 Spring NIC conference, optimism is high as occupancy, margins, liquidity and values rise across seniors housing and SNFs. Key questions remain on pricing for Class-A vs. value-add assets, future development, and whether scalable middle-market solutions or government support will emerge.
The State of the Healthcare M&A Market
At a Miami healthcare PE conference, discussion focused on rising outpatient investment, AI and a persistent bid-ask spread slowing broader healthcare M&A versus seniors housing. With strong dry powder, buyers are exploring creative deal structures and new sectors. A March 19 webinar will analyze these trends and the latest M&A data across healthcare.
Latest Senior Care Valuation Statistics are Released
The 31st Senior Care Acquisition Report is out for LevinPro LTC and LTC News subscribers, featuring the largest proprietary dataset yet with hundreds of confidential prices, cap rates and operating metrics. With record M&A and strong Class-A gains, seniors housing hit a record $267,000 per unit, as AL and IL also set new highs—key data for 2026 dealmaking.
