NEW CANAAN, CONN. (PRWEB) OCTOBER 21, 2021 – The number of publicly announced seniors housing and care acquisitions in the third quarter of 2021 fell to 107 deals, based on new acquisition data from LevinPro LTC. This represents a 4% decrease from the 111 transactions in the previous quarter but is 78% higher than the 60 deals made public in the third quarter of 2020. The $5.3 billion spent on the third quarter transactions dropped by 20% from the previous quarter’s total of $6.9 billion, which was a historically strong total.
“The momentum in the senior care M&A market at the end of June made a lot of buyers, sellers and lenders comfortable with closing deals,” stated Ben Swett, Editor of The SeniorCare Investor. “Activity could have been higher across the senior care sectors, but a quarter with over 100 announced transactions shows a healthy market.”
There were 69 seniors housing transactions involving nearly 10,300 units, with 37 skilled nursing deals combining for around 11,460 beds. There was also one transaction that featured a combination of seniors housing and skilled nursing properties with a total of around 18,470 beds and units. That was DigitalBridge Group’s (formerly known as Colony Capital) divestment of its healthcare assets, which included 53 managed seniors housing communities, 106 managed MOBs, 65 triple-net leased seniors housing communities, 83 triple-net skilled nursing facilities and nine triple-net hospitals. Also included is the company’s equity interest in and management of its sponsored non-traded REIT, NorthStar Healthcare Income, Inc. The deal was valued at $3.21 billion, or 60% of the quarter’s total dollar volume.
In terms of seniors housing deals, assisted living attracted the most attention, accounting for 61% of the announced deals in the quarter. Independent living deals took a 17% share of the quarter’s activity, followed by CCRCs at 10%. Active adult and affordable senior apartment deals took 5% and 4% of the deal activity, respectively.
“Investors remained active despite the shortage and rising costs of labor, the Delta variant and another round of provider relief,” added Swett. “With healthy capital markets and continued low-interest rates, we should see M&A activity rise even higher in the fourth quarter and into 2022.”
All long-term care M&A deals dating back to 1993 can be accessed on the LevinPro database and can be purchased via a site license. All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of LevinPro HC. In addition, annual results of the seniors housing and care acquisition markets were published this year in the 26th Edition of The Senior Care Acquisition Report. The comprehensive report has more than 300 pages of transaction details and valuation statistics. For information, or to order the reports, call 800-248-1668. Irving Levin Associates was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters, and maintains databases on the healthcare and seniors housing M&A markets.
