Seniors in middle of landlord-tenant tiff
Residents ordered to leave not sure whose story is true
SAN JOSE » As 80 local seniors are forced out of their assisted living facility this winter, they’re being told it’s their landlord’s fault that they’ll spend the holidays looking for a new home instead of relaxing with loved ones.
But new information suggests that isn’t the full story — a twist that has left at least one resident’s family feeling hurt and betrayed.
Late last month, as this news organization reported, staff at Atria Chateau Gardens in Willow Glen told residents the facility was shutting down — and the seniors had two months to pack up their belongings, find a new
home and get out — because landlord Westlake Realty Group had refused to renew the center’s lease. But now Westlake, in its first public comments, says that’s not true, suggesting Atria could have done more to protect its vulnerable seniors from being forced to hunt for a new home in an area where senior living options are notoriously expensive and availability can be limited.
“We negotiated very hard to try to get them to renew the lease,” said Westlake chairman William Chang, whose father founded the San Mateo-based property management company. “And they said, ‘We’re not interested.’ ”
An Atria executive told Westlake in June that he wasn’t interested in a lease, setting the stage for the center’s closure, according to an email viewed by this news organization. Nevertheless, Atria gave no warning to residents and instead continued to move new seniors into the building. As the lease expired in November, Westlake says it offered to let Atria’s residents stay until September 2018 — an option Atria’s management declined, instead choosing to close its doors in early February.
Atria Senior Living, which operates 190 senior communities — including Atria Chateau Gardens and 10 others in the Bay Area — denied Westlake’s claims.
“We disagree with Westlake’s characterization of this situation and stand by our earlier comments,” Atria wrote in an emailed statement. “We remain committed to continuing to provide care and services to our residents while also assisting them and their families through this relocation process.”
Hearing Westlake’s version of events upset Glenn Thomas, whose 94-year-old mother-in-law, Emma Magnuson, lives in Atria Chateau Gardens.
“It’s just such a betrayal. They didn’t give us the full story,” said Thomas, who teaches classes in social work at San Jose State University.
Now Magnuson is trying to get a room in Atria’s other San Jose facility, but her son-in-law isn’t holding his breath. She’s number 17 on the waiting list.
When news broke late last month of Atria Chateau Gardens’ impending closure, Westlake did not respond to multiple calls and emails requesting a comment. On Monday, Chang said he had been dismayed by the response to the story and decided to set the record straight.
According to Chang, Atria’s 40-year lease was set to expire Nov. 22, so landlord and tenant began negotiations in March to renew that contract. The building needed $7 million in renovations, and among the issues the two sides were discussing was how to pay for those improvements, he said.
On June 22, Westlake president Gary Wong reached out to an Atria executive to set up a discussion about renewing the lease for another five or 10 years, according to emails that Chang provided.
Atria says Westlake refused to pay for the needed improvements, so the offer to extend the lease fell short. Atria instead offered to buy the building and make the improvements itself, but Westlake wasn’t interested in selling.
“I have no interest in a lease of any type,” responded Rick Atlas, Atria’s chief investment officer and head of business development, according to a copy of his email viewed by this news organization.
Last month, as the lease’s expiration date approached, Westlake gave its tenant one more offer: Stay until September to give staff ample time to transition residents to new assisted living facilities.
“We made an offer saying that it would be a very unpleasant experience for the residents to be given a notice to move out in the middle of a holiday season. It’s cruel. It’s not right,” Chang said. “So take your time… do it in January, and you’ll have plenty of time to ease them out. And they said, ‘We refuse.’ They turned us down.”
Chang says that offer is still on the table.
An Atria representative acknowledged that Westlake did offer a short-term lease extension on Nov. 15, but said the proposed terms were “egregious.” The representative said Atria could not say more because of “litigation pending against the landlord.”
Westlake’s version of events contradicts what Michael Mejia, Atria’s senior vice president of West Operations, told upset and confused residents late last month.
“We have repeatedly made clear our desire to continue to operate Atria Chateau Gardens at this location, either as a tenant or a manager, for the long-term future,” he wrote in a letter to residents and their families. “However, Westlake has chosen not to sign another long-term agreement and has indicated that it has identified a use for the property other than senior housing.”
The decision to shut down “was out of our hands,” Mejia added.
Chang says Westlake has no plans for the building once Atria moves out.
Thomas said if residents could stay until September, instead of being forced out in early February, it would make all the difference. “I think everybody could have made much better plans, and planned for their loved ones who have a difficult time making that transition,” he said. “It would have been easier for everybody.”