Transaction activity in senior housing and care sector falls to new low in Q3

The number of publicly announced senior housing and care acquisitions in third quarter 2020 fell to a new recent low, with 58 deals announced, based on new acquisition data from Irving Levin Associates. This represents a 3 percent decline from the 60 transactions in the previous quarter but a 44 percent drop from the 104 deals made public in the third quarter of 2019.

However, the $1.48 billion spent on third-quarter transactions surpassed the previous quarter’s total of $1.36 billion by 9 percent, based on publicly disclosed prices. Dollar volume was 74 percent lower compared with third quarter 2019, which saw $5.74 billion invested.

“The pandemic continues to stymie deal making in the seniors housing and care sector,” stated Ben Swett, editor of The SeniorCare Investor. “Difficulty in obtaining acquisition financing, third-party approvals and property inspections, along with serious questions about how the time it will take for occupancy and operations to rec