Creator: Patrick Connole
Interest Rates Can’t Stop Seniors Housing M&A - Levin
Levin Associates said interest rate headwinds have not slowed seniors housing and care M&A, with dealmaking – including SNFs - on track for a record year.
A new report by Levin Associates said interest rate headwinds have not deterred seniors housing and care M&A activity, with dealmaking remaining on track for another record year.
“The industry recorded 241 publicly announced deals in the third quarter of 2026, according to data from LevinPro LTC. Excluding foreign transactions, quarterly volume totaled 201 deals, bringing the U.S. year-to-date total to 614, just 76 deals shy of the full-year 2025 total,” the group said.
The monthly average of publicly announced U.S. transactions in Q3:26 was 67, a pace that would translate to 804 deals annually. U.S. deal volume declined 2 percent from the previous quarter. “However, off-market closings have increased, with some remaining confidential, and REITs remain among the most active buyers but often disclose limited transaction details. Additionally, deal activity typically picks up from the third quarter to the fourth,” the report said.
Assisted living accounted for the majority of Q3:26 deals at 58 percent, followed by skilled nursing at 25 percent, and independent living at 11 percent. CCRCs, active adult, and affordable senior apartments each accounted for 2 percent.
Although the supply of skilled nursing facilities available for sale continues to fall short of investor demand, recent transaction activity suggests more sellers are coming off the sidelines, Levin said.
The number of skilled nursing facilities sold in Q3:26 rose 3 percent from Q2:26 and 58 percent from Q1:26. Larger portfolios also contributed to the activity with seven publicly announced transactions involving at least 10 assets closing in Q3:26, six of which were skilled nursing portfolios. Comparatively, six such transactions closed in Q2:26, with five being skilled nursing portfolios, the report said.
As buyers competed for relatively few available facilities, values jumped across each of the senior care sectors, according to the Mid-Year Update to The Senior Care Acquisition Report (see report here).
A lack of new construction in the sector, and the higher capital costs to build communities today, could help push M&A activity and values even higher, as well, Levin added.
Contact Patrick Connole with questions or comments at pconnole@parkplacelive.com.
