Merger and acquisition activity in the senior living sector shattered records in 2014, with transactions worth $8.7 billion in the fourth quarter alone. The year overall saw approximately 280 transactions together worth $25.75 billion. This marks a 27% increase in the fourth quarter of 2014, and 121% merger and acquisition growth for the year overall. This reflects are growing interest in the senior living industry as a whole. The 2015 rankings reflect the growth and merging of the top players in the senior living market. In 2014, both publicly traded and non-traded real estate investment trusts, private equity firms, and other senior living operators acquired senior housing and other healthcare real estate at a steady pace. Some of these companies sought to expand into territories foreign to them, where others merged to form combined entities of vast scales, setting the stage for the 2015 rankings.
According to the Assisted Living Federation of America’s annual ranking of senior living providers, ranked by capacity, the biggest change from last year is the merger between Brookdale Senior Living and Emeritus Senior Living Corp. The newly-combined entity’s total resident capacity is now 113,022 across 1,140 total properties. Brookdale is now the largest senior living provider by more than twice the resident capacity of the number two spot, Holiday Retirement, with capacity of 41,508 residents over 306 properties. Spots 3, 4, and 5 are much closer together in capacity, with Life Care Services LLC at number 3, representing a capacity of 25,989, followed by Five Star Quality Care with a capacity of 25,989, and Sunrise Senior Living, with room for 25,065 residents. The bottom five of the top 10 include Erickson Living Management, Atria Senior Living Group, Senior Lifestyle Corp., Capital Senior Living Corporation, and Meridian Senior Living LLC.
The Assisted Living Federation of America also compiled lists of the largest assisted living providers, memory care providers, and providers of independent living. Brookdale took top five honors in all three rankings. The top five assisted living providers include Brookdale, Sunrise, Five Star, Atria, and Meridian. The top five memory care providers were Brookdale, Sunrise, Meridian, HCR ManorCare, and Five Star. Finally, the top five independent living providers for 2015 are Holiday Retirement, Brookdale, Erickson, Life Care Services, and Five Star.
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Cambridge Realty Capital specializes in providing financing and capital for large-scale improvements to senior living facilities. We also have expertise in mergers, acquisitions, and joint ventures. For any questions regarding finance and capital for your senior living initiative, contact Cambridge Realty Capital. Our experts are standing by to help you grow and improve your senior living community.