REIT buyers are quiet.
With the low cost of capital and Wall Street behind REIT growth in Seniors Housing, REITs have been buying nursing home and assisted living portfolios at a rapid pace for the last three years. However, all is currently quiet on the REIT front.
Why has there been a slow down with REITs buying?
A few reasons. 1) There is a lack of quality Seniors Housing portfolios on the market. Those companies with high quality portfolios that thought about selling have already done so over the last few years. 2) The REITs are in the process of digesting all of the properties that they have purchased. Like any good investor, they want to be sure their operator has success with what they currently operate. This preserves value and makes sure their assets are headed in the right direction. 3) REITs are trying to figure out what they are going to do with some of their older, aging real estate. They are focusing on selling older, smaller, non-core assets.
Please contact Ryan Saul if you have thought about selling. Now is a great time to sell while interest rates are still at historic lows. Also contact me if you are in the market to buy nursing home or buy assisted living. Our inventory is constantly changing.