Stephen M. Monroe, Partner
Fax: 203-846-8300


NORWALK, CT – October 25, 2011 – Despite the anemic economy and still struggling housing market, seniors housing property prices continued to increase during 2011.  For the 12 months ended September 30, 2011, the nationwide average price per unit for assisted living facilities increased to $161,700, a 57% increase over calendar year 2010 and a 27% increase over the trailing 12 months ended June 30, 2011.   “We have been seeing many higher quality properties and portfolios come on the market where the bidding gets aggressive and they are sold at prices we have not seen in a few years,” stated Stephen M. Monroe, editor of The SeniorCare Investor, the leading publication on seniors housing and care mergers and acquisitions.  “The institutional demand, combined with relatively low interest rates, even in this capital-starved environment, has resulted in a significant swing in average prices to the record levels of 2006 and 2007,” continued Mr. Monroe.  The average cap rate for assisted living transactions during the 12 months ended September 30, 2011 dropped to 9.0% from 9.6% in calendar year 2010.  “Transactions with cap rates of 7.0% to 8.0% for the “A” quality properties have become more common in the assisted living market purely because of strong demand.”

In the skilled nursing market, the trailing 12 months average price per bed declined slightly to $59,100 per bed from the record of $62,500 per bed set in 2010.  “We expect the full year of 2011 to have a more substantial decline after the high-priced transactions from the fourth quarter of 2010 are removed from the calculation,” stated Mr. Monroe.   The average cap rate dropped by 50 basis points to 12.6% for the 12 months ended September 30, 2011.  “It is expected that prices for skilled nursing facilities will moderate as investors and operators digest the recent 11.1% cut in Medicare reimbursement to skilled nursing facilities,” continued Mr. Monroe. 
All of the deal prices and statistics for the full year 2011, plus details on all the publicly announced seniors housing and care acquisitions, will be published in The Senior Care Acquisition Report, Seventeenth Edition, late in the first quarter of 2012.  The Senior Care Acquisition Report is the only authoritative report on the seniors housing and care acquisition market, and is the only report of its kind that has been continuously published and relied on by the industry’s participants for nearly 20 years.  The Senior Care Acquisition Report may be purchased for $595. For more information, or to order the report, call 800-248-1668.  Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing markets. 

Click here to get more information on any of our Publications.