The bid-ask spread for seniors housing assets began to widen, naturally, along with the rise in interest rates in the second half of last year and it appears to have widened further in 2023, according to Cody Tremper, managing director – Investment Sales at Berkadia.
Therefore, owners "without an urgent need to sell are holding onto their properties for now, while those with an urgent motivation to sell are having a more challenging time trading their assets at discounts," according to a Berkadia report in which Tremper was quoted.
The firm expects less trade volume in 2023 compared to the past few years, especially given M&A activity is also on the decline.
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