- JLL released its 2024 Senior Housing Investor Survey. Key takeaways: 1. Senior housing occupancy continues to show recovery following the pandemic; 2. Transaction volume was down 33% last year based on challenges in the capital markets; 3. Cap rates sit at 7%; 4. Construction starts are down more than 50% from 2021 peak levels; and 5. The population of adults over 75 is expected to grow 44% over the next decade.
- Argentum released its 2024 senior living forecast. Key takeaways: 1. The western and southern parts of the U.S. will lead population and labor growth; 2. Hourly wages for senior living workers increased 6% in 2021, 8.9% in 2022 and 4.4% in 2023; and 3. Finding labor in senior living communities continues to be a challenge.
- Welltower announced plans to acquire 25 active adult communities operated by Affinity Living Communities for $969M. The portfolio includes 3,900 units located in the Pacific Northwest.
- American Healthcare REIT (AHR) may buy the remaining 26% of Trilogy Health Services that it does not own. AHR said Trilogy is one of its largest and best operators. Trilogy owns 130 senior living communities in the Midwest.
- The Good Samaritan Society announced plans to develop a new $200M senior living and health care campus in South Dakota. The campus will include 510 units, up to 180 skilled nursing beds and a variety of health care services under one roof.
- Baptist Memorial Health Care (TN) recently formed a joint venture with Urgent Team Family and opened 10 new urgent care centers in the Mid-South.
- VMG Health published a summary of ASC trends from 2023. Key takeaways: 1. Higher acuity procedures are being performed in ASCs; 2. Certificate of Need laws are being relaxed to permit ASC growth and expansion; and 3. Large ASC operators continue to consolidate the market. The largest operators by number of facilities are USPI (476), SCA (320) and AmSurg (250).
- Hospitalogy published a summary of Tenet Healthcare’s massive investment in ASCs. Tenet has an ownership interest in 485 ASCs and plans to grow that number to 600 or more by 2025.
- UNC Health has acquired 52 acres in Durham County, North Carolina for future expansion.
- Four Corners Property Trust (FCPT) acquired a primary care clinic in Tennessee that is leased to Baptist Medical Group. The acquisition is part of a larger strategy announced by FCPT several months ago to acquire retail health care properties in the U.S.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
