Over the past couple of years, we have seen capitalization rates (defined as Net Operating Income divided by Purchase Price) drop steadily to historically low levels, for seniors housing which...
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National Investment Center (NIC) holds their main industry conference every Fall and a Regional conference every Spring, typically alternating between Florida and California. The NIC conferences are typically attended by...
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Long term financial modeling is essential in evaluating any income producing asset. Using the Cap Rate method, one is only looking at the current (or trailing) net operating income, which...
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Our industry uses Cap Rates, as a standard pricing measure. The Cap Rate is derived by dividing the Net Operating Income (NOI) by the purchase price. The lower the Cap...
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There are many types of buyers in the senior housing market and sometimes it can get confusing for sellers to know who they are really dealing with. While it is...
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When determining the price a buyer is willing to pay for a Senior Living Community, they look at many things. Ultimately, though, every operating asset is worth the future cash...
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In analyzing thousands of communities each year, we find a very wide range in operating margins. Newer, larger communities have higher operating margins than older, smaller facilities. Communities with high...
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How do Cap Rates for Senior Living compare with Apartment Buildings? A Cap Rate is the most commonly used method in determining the value of a real estate asset. A...
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As broker’s we get posed this question often. The biggest driver of a community’s value is its current net operating income and Cap Rates. Communities are typically valued be dividing...
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Over the past several years, interest rates have been extremely low. The 10 year US Treasury rate (a common benchmark for financial instruments) reached an all-time low in July, 2012...
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