The third quarter of 2024 marked a record-breaking period for senior housing and care acquisitions, with a substantial year-over-year jump seen during the quarter for skilled nursing deals as well.
That’s according to data released Monday from LevinPro LTC. There were 175 total deals for the quarter, of which 37% were skilled nursing transactions.
Skilled nursing came second for the number deals closed during the third quarter, behind assisted living which accounted for 45% of the activity.
For the year, 700 annual transactions were completed, surpassing the previous high of 559 transactions set in 2022 by about 25%.
The total expenditure for senior housing and care transactions reached a staggering $2.96 billion, representing a 28.7% rise from $2.3 billion in the second quarter and an astounding 243.1% increase compared to the $861.6 million recorded in the third quarter of 2023.
Although the latest quarterly number reflected a 5.6% decrease from the 185 transactions reported in the previous quarter, it still showcased a remarkable 34.9% increase from the 123 deals made in the same quarter the previous year.
Meanwhile, the third quarter of 2023 marked the lowest quarterly spend on senior housing and care acquisitions in the last decade.
With the interest rate cut and an improved operational environment, cap rates have come down for stabilized deals, with more portfolios being up for sale. There is a shift in the market away from small, distressed deals at discounted prices, the LevinPro report noted.