In a recent blog post, BDO examines the role of private equity in the healthcare and real estate industries.
Editor’s Note: This content was originally produced on BDO’s website.
While the number of senior housing real estate deals continues to rise, deal sizes seem to be on the wane. In 2011, the 312 senior housing and care deals totaled $27.6 billion in transaction volume, according to data from the National Investment Center for Seniors Housing and Care (NIC). By comparison, from the second quarter of 2014 to the first quarter of 2015, there were 609 deals totaling $19.9 billion, according to NIC data.
Healthcare property investors—real estate investment trusts (REITs) and private equity firms—are especially attracted to the senior housing sector because of its market fundamentals. Aging demographics mean growing demand and, since most facilities are private-pay, they are less susceptible to government funding decisions than other healthcare properties such as hospitals and skilled nursing facilities.
