March 23, 2018, Steve Monroe, Senior Care Investor - It shouldn’t come as a surprise that in 2017, the oldest seniors housing properties (independent living and assisted living properties built before 2002) were valued the lowest and the newest properties (built after 2011) were valued the highest, according to the just-published 2018 Senior Care Acquisition Report.
We see a similar correlation most years, but it is important to note that not all ages take into account renovations (and they would have to be substantial renovations and/or gut rehabs to change the effective age of the building) or additions (often of memory care units). However, it is generally true that in order to better compete in today’s senior living market, investors want the best bones they can buy.
The two middle age groups did not follow a perfect correlation, however, with properties built between 2002 and 2006 selling for a higher price than those seniors housing properties built between 2007 and 2011.
The difference was small ($257,400 per unit versus $245,100 per unit) but is perhaps the result of fewer data points, as those 10 years fall in between two significant building booms in seniors housing. Nevertheless, each age group rose in price, with the exception of the 11-15-year old group (which fell from an abnormal high of $272,100 per unit in 2016).