By Pam McDonald
“There seems like there has been a slowdown in the transaction volume,” says Shep Roylance, Senior Vice President of JCH Consulting Group
, a full-service real estate brokerage company and Senior Housing Forum partner, “but I think it’s because of the amount of inventory that’s out on the market.”
“Three years ago there were so few facilities that were coming on the market (I’m speaking specifically to skilled) that everybody was clamoring to get those facilities and they were paying top dollar. There’s now so much more inventory on the market that it’s actually driving prices down a little bit.
“So all those buyers that were buying at a hundred thousand a bed or higher are now . . . I guess they’ve become a little bit more strigent with their acquisition strategy. They’re now . . . taking a harder look at their underwriting and I see that they’re now wanting to pay anywhere between 75 to maybe 90,000 rather than the 100,000+ a bed now.
To learn more about the changing face of senior housing or SNFs, please contact Shep at (805) 633-4649 or visit his website to see current featured listings by clicking on the button below: