The Stahler Group Announces First Seniors Housing Closing
The Stahler Group of Marcus & Millichap, headed by JCH Senior Housing Investment Brokerage alum Nick Stahler, has its first deal under its belt. Mr. Stahler and Mike Mooney sold an 89-unit assisted living/memory care community in Walnut, California, representing the private investor seller. Built in 1987, the community was originally leased to Summerville Senior Living, then to Emeritus, and finally to Brookdale Senior Living after its 2014 merger with Emeritus. There was limited competition in the area, and some positive cash flow, but the property was considered to be a value-add/turnaround opportunity. Brookdale had chosen not to renew its lease, so the sale process was... Read More »
Occupancy at Brookdale Senior Living Slides
In a sign of the times, tough times, Brookdale Senior Living just announced its November occupancy results, and the numbers are sobering. Average occupancy for the month was 72.8%, a drop of 100 basis points from October, which was double the October drop of “just” 50 basis points. That is a cumulative decline in occupancy of 990 basis points since March. If the winter months are going to be as bad as Dr. Fauci is predicting, it is quite possible that we will start to see sub-70% occupancy levels. That will be a disaster. What is interesting in the case of Brookdale is that 89% of its communities were still open for move-ins as of November 30, so that is not the... Read More »
Senior Care Soars
What happened on November 9 was a bit of a shock, but in a good way. Senior care and REIT stocks soared after a year of forgettable foibles. The reason? Pfizer’s announcement that its COVID-19 vaccine was more than 90% effective, and that it could be available very soon, combined with the apparent end of the presidential election with Joe Biden the victor. We believe it was the end of the uncertainty on both accounts that pushed the market up. For those not paying attention, the Dow Jones Industrial Average at one point during the day hit a record high of 29,933, up 5.68% from the previous close. It ended the day up 2.95%. But it was the senior care market and its related REITs... Read More »
Brookdale Senior Living Reports
Even in the depths of a pandemic and a disrupted economy, there is always the bright side of things, right? Brookdale Senior Living, the largest seniors housing provider in the country, reported its third quarter earnings results and certainly had some positive things to say about where the company is today and how it will improve in the future. Always lead with your best. Unfortunately, shareholders focused on the problems and sent the share price down by 15% right off the bat. The good news for the future is that they completed a major lease restructuring with Ventas, reducing future cash rent by about $500 million over the remaining lease term ending in December 2025.... Read More »Schedule a demo
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