Average price per unit paid grew by 14% to a new record of $221,250t, according to the latest Senior Care Acquisition Report from market intelligence firm Irving Levin Associates. The average cap rate for assisted living communities fell to 7.6%, helping to push values higher, according to Senior Housing News.
Units at independent living communities also increased in value, though not to record-setting levels. The average price per unit for independent living communities increased 1% in 2017, to $230,100 per unit. Addiitonally, the average independent living cap rate fell to 7.0%.
There is growing evidence that offering independent living or assisted living on a standalone basis is falling out of favor with investors and operators. In a recent survey from professional services firm JLL (NYSE: JLL) a whopping 86% of respondents said communities that had both independent and assisted living options were “very or extremely desirable.”
Read the full story at Senior Housing News.