Approximately 630 nonprofit, market-rate senior living communities have changed hands since 2015, according to an analysis released last week by specialty investment bank Ziegler.

Although 2020 saw a slight slowdown, largely due to transactions being put on hold or delayed as a result of the COVID-19 pandemic, the pace of sponsorship transition activity in 2021 has accelerated, and year-to-date, already is roughly equal to last year’s totals for the entire year, the bank said. 

Ziegler’s analysis also found that approximately 90 nonprofit communities have closed or changed sponsor/owner since the onset of the pandemic. In addition, the proportion of facilities that closed — as opposed to changing sponsors/owners — has jumped noticeably over the past two years.

Between 2015 and the end of the second quarter of this year, 12.3% of nonprofit communities closed. But when one examines closures from 2020 through today, that closure proportion jumps 25.9%.

The good news over the past two years, the bank noted, is that the proportion of nonprofit to nonprofit transactions increased.

“This shows that a number of not-for-profit organizations are serious about growth through affiliation, merger and acquisition opportunities and are devoting resources to these endeavors,” wrote Lisa McCracken, director of senior living research and development at Ziegler.