New Senior Housing Report Offers Insight to Investors

By October 4, 2011 News No Comments

Still a rather new investment class, senior housing data on deals and transactions has been largely difficult to obtain for those outside of the major commercial real estate industry.

But last week, that changed, per this article from National Real Estate Investor Online.

In Washington, DC, researchers released a report “designed to provide investors with comprehensive transaction data on seniors housing and nursing homes” at an annual conference sponsored by the National Investment Center for the Senior Housing & Care Industry.

Produced by NIC in collaboration with Real Capital Analytics (or RCA, based in New York City), the comprehensive and long-awaited report presents data collected since 2008, indicating a sharp rise in buying activity among healthcare REITs (real estate investment trusts). Another key finding: at the end of the second quarter (of 2011), senior housing sales totaled $16.8 billion. Also in the second quarter, assisted living and independent living buildings averaged $132,300 per unit, an increase of 51% since last year.

Although new construction is still sluggish, the report noted: “strong sales volume coupled with rising values reflects the continued vitality of seniors housing fundamentals.”

Buyer composition charts were also shared in the research; publicly-listed REITs by far dominated the buying market, purchasing 78% of assisted living and 88% of independent living properties.

 

This article originally appeared at SeniorsForLiving.com.

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